How To Deal With Banks During Financing

Private enterprises often have to deal with banks and other financial institutions. How do they win the trust of banks?

The character of the manager (1) charete will affect the attitude of the bank to cooperate with you.

Although bankers are interested in your company's financial information, they are more interested in you because they lend you money.

Capital (2) the bank wants to be one of the many investors, not the sole investor.

This requires you to take some risks, but the bank wants to see if you have enough confidence in the company.

The ability of capacity (3) ability refers to your ability to borrow, including your personal credit record and economic foundation.

If the company has just opened, the ability to borrow is limited.

The key is to start building relationships with banks and gradually develop their borrowing capacity.

(conditions) the last aspect of dealing with bankers is related to the economic and commercial conditions of the local industry and your industry. (4)

Economic conditions will affect everyone and form part of credit conditions.

It is more difficult to obtain loans during the economic downturn than during the period of high economic growth.

Collateral (5) is not an adventurer, so they ask for collateral to guarantee repayment of the loan.

Many people do not understand that mortgage is a common practice in the financial industry.

In the future, when the company's cash flow is sufficient to support repayment of the loan, it can negotiate with the bank to recover the mortgage.

There are 5 major criteria for intercourse between banks and banks.

You may not tell the bank everything about the company, but everything you say must be true.

Your year-end settlement must be handed over to the bank third months after the business year.

You have to report the situation to the bank before you know the new problems in your business from other channels.

Put yourself in the bank's position; how do you evaluate your company's operation from the information you know?

Don't promise the bank easily.

Once you can't complete the target, the bank will think you lack vision and judgement.