How does a bank decide whether or not your business qualifies for a loan?

I’ll be diving into the 4 most important metrics over the next 4 Fridays.

We’ll look at:

1️⃣ Balance Sheet Leverage
2️⃣ Cash Flow Leverage
3️⃣ Profitability
4️⃣ Capitalization

Which one matters most?
How are they calculated?
What happens if 2 are great and 2 are terrible?

I’ll share real-life examples that answer all of these and more.

But as we go through this series, there’s 1 important thing to remember:

Make BUSINESS decisions for your business,
Not BANKER decisions.

If you run your business trying to please your banker,
It probably won’t work out as well as you hoped….

This is purely meant to help you not walk into the bank blind when it’s time to ask for money.

For my fellow bankers out there:

Which metric(s) do you weigh most heavily?

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???? Follow Brian on Linkedin: Brian Pillmore

#banking

#loans

#business

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