In five pages this paper discusses how to successfully negotiate a loan from a bank with a small business case study that examines necessary assurances, items, and evaluates the usefulness of collateral. Five sources are cited in the bibliography.
Name of Research Paper File: CC6_KSbankLendSm.rtf
Unformatted Sample Text from the Research Paper:
This small business is sound in most areas, but it is lacking in that one area that so often plagues small business. It needs working capital.
The truth of the matter is that small businesses often cannot keep pace with their own growth. The dream takes off and business is
doing well, but then more orders come in than the business can handle. It needs greater capacity, more people dedicated to taking orders, increased numbers of production workers.
The business needs to be able to finance what it needs, however. If the need is material, the business needs to be able to purchase those items that can
fill the need. If the need lies with personnel, the business obviously must be able to pay them in that lag time between initiation of an ordered lot of
finished goods and the time that the company is paid for the product it has furnished. This is where a solid relationship with
a bank or similar lender is advantageous for the business. Even though such a relationship may exist, however, the business still will need to demonstrate an ability to repay
the loan as well as the ability to remain in business, at least until that loan is repaid. What the Business Needs
to Demonstrate Business Facts This loan specifically is for working capital, not startup funds. It is possible that some bank within the
borders of the US will lend money for a business startup, but the existence of such a bank is unlikely. Despite news reports of snafus such as Citibanks exposure