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    How to Prepare for a Lender Meeting

    Applying for a business loan can be a stressful part of owning your own business. But, if you’ve done your research, you know your borrowing options and you know it’s time to apply for a loan, actually meeting with a lender can be stress-free, simply by being prepared.

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    By Deanna Barzak, Business Services Relationship Manager, Telhio Credit Union

    Bringing a well-developed business plan is essential to obtaining a loan. The following questions should be answered in your business plan:

    1. How much money do you need and what is the owner’s capital commitment?
    2. What will you use the money for? Give a clear description of how the money will be used and how you intend to pay it back.
    3. How will the loan affect your financial position?
    4. What will you pledge as collateral?
    5. How will you repay the loan?
    6. When will you repay the loan?
    7. If you don’t realize projections, can you still repay the loan?
    8. How much can your business afford to lose and still remain viable?
    9. How will the business manage risk?
    10. How has your existing business performed to date? Is the financial position of the business improving?

    Once you’ve written your business plan, you’re ready to set up a meeting! Below are the top ten things you should be prepared to discuss or bring along with you when applying for a business loan:

    1. The purpose of the loan
    2. The history of your business
    3. The projected opening day balance sheets
    4. Lease details
    5. The amount of investment in the business by the owner(s)
    6. The projection of income, expenses, and cash flow
    7. Signed personal financial statements
    8. A personal resume
    9. The names and contact information for at least three credit references
    10. List of business and personal assets that could be used as collateral

    Existing businesses should also bring financial statements for the past three years, a schedule of term debts and aging accounts receivable and payable.

    Telhio Credit Union has both business loans and lines of credit available to small business owners. For more on these alternative financing options, contact a Telhio business lender representative at 614-221-3233, option 6.

    For more information on applying for a business loan, check out www.creditunion.coop.

    Telhio Credit Union is open to everyone who lives, works, worships or attends school within Franklin County and surrounding communities. Founded in 1934, originally as the credit union for the Columbus Telephone Co., Telhio is a not-for-profit financial cooperative where its members are also its owners. Driven by its philosophy that members come first, Telhio is committed to the highest standards of responsibility and conduct. Telhio offers a variety of innovative programs, services and products to support its members’ financial needs. Telhio offers six branching offices throughout central Ohio and nearly 4,000 shared branching locations nationwide. Federally insured by NCUA. Additional coverage up to $250,000 provided by Excess Share Insurance Corporation, a licensed insurance company.

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