what’s next?. july 28, 2010 the loan your continuing relationship starts with the loan documents...
TRANSCRIPT
WHAT’S NEXT?
July 28, 2010
The LoanYour continuing relationship starts with the
LOANDOCUMENTSSome things to think about:Third party payments whenever possibleStep loans can be helpfulMonthly P&L statements as part of the loan
agreementACH payments if at all possible
After the LoanMake a visit if possibleCall oftenStay involved – as a sympathetic earListen for problems
The Business OwnerEvaluate strengths and weaknessesKnowledge and experience of businessReasons for starting businessSupport system
WeaknessesAscertain areas where help is neededSirolli model: Trinity of Management
MarketingTechnical skills/productionFinance
Check List of HelpMentorsSmall Business Development CenterMicroenterprise ProgramBusiness CoachPeersProfessionals: Lawyer, Accountant, etc.SCOREOther Volunteers
Other Types of SupportAffinity groupsWorkshopsService ClubsChambers of CommerceChurch GroupsOnline/social networking
Financial InformationExtremely Important!!Request P&L monthlyWatch for trends – nobody makes a profit
right away –Questions:
Are they putting money back into business?What kind of owner’s draw?Were original sales projections realistic?Expenses realistic?Does the owner know where the money is?
ProblemsUndercapitalized?Original projections not realisticFinancial managementMarketingProductionPersonal problemsThe sooner identified, the better
Course CorrectionThe sooner the problem is identified, the
more likely the problem can be resolved
RefinanceChange repayment planInterest onlyAssemble team of experts to help
Questions, Comments,Stories to share…….
