Business Financing 101 - How To Borrow From Your Bank

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How do I borrow funds for my business? What are the different types of lenders and who should I borrow from? What do lenders look for when qualifying potential borrowers? What is the process of borrowing a business loan from a bank? How can I increase my chances of funding success when negotiating with banks? What affects my borrowing capacity? How can I negotiate with the banks to find the best deal? Are loan brokers a worthwhile investment?
In today's video we will discuss in detail the entire lending process and what you need to expect when dealing with commercial lenders for business loans. We will also discuss the 4 primary types of lenders (banks, private lenders, credit unions and specialized lenders) and the advantages/disadvantages in dealing with each group. We will also cover the lending process in detail to help clearly explain what type of information the banks are looking for and how best to answer their questions. See the 9 steps to the commercial lending process below:
1) Introductions and Pre-Deal Discussions
2) Initial Due Diligence and Q&A
3) Term Sheet Issuance
4) Credit Underwrite
5) Revisions and/or Credit Approval
6) Offer of Finance
7) Pre-Closing Legal & Securitization
8) Loan Funding
9) Post-Close Ongoing Lender Communications
If you have any other questions, please comment below. If you enjoyed the video and found it helpful, please like and subscribe to FinanceKid for more videos soon! If you want to reach out, contact me at;
[e-mail]
If you are a Canadian business owner looking to sell/buy a business or borrow funds, please reach out to me for an introductory call. You can contact me through email or through my LinkedIn at;
/ robert-bezede-20ab8a6a
Roblee Capital is a Toronto-based M&A Investment Bank focused on serving companies with revenues between $1MM to $100MM primarily offering sell and buy-side M&A services. We work with Canadian-based business owners looking to sell their lower mid-market business. We also offer loan brokerage services for business owners seeking debt financing solutions to help finance and grow their business. If you are a Canadian business owner, please reach out so we can connect at the link below:
www.robleecapi...

[@spotlesstv1574]

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[@financekid3163]

Thanks for watching! Glad you found it helpful.

[@jowchen11]

This presentation is really helpful even for people in the US market!

[@lenovolenovo6530]

Fabulous content, even though i am studying a business administration program in college and they didnt taught that, learnt a lot from your videos, thanks!

[@whateverman181]

Thanks for sharing this excellent perspective

[@Truthhurts808]

Excellent overview and tips!

[@tarekalsherif57]

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[@spotlesstv1574]

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[@RacksonRacksonRibss]

Do you have any advice on graduate degrees for someone working through the ranks in commercial banking?
Just a little background I did about a year and a half in commercial compliance at a regional commercial bank, then moved to another bank (a bit smaller) and have done about a year and a half in credit and now have been an ag/business rm for about 3 years. Most of my portfolio is revenues of $500K-$5MM and the book is about $65MM exposure.
I’d like to work on larger, C&I type credits with a bit more complexity than I am currently. Debating whether I should try to move up based on experience alone or pursue masters/MBA at this point to better my appeal/resume? Currently have a bachelors in Economics as my only degree/no certs. Thanks in advance!

[@financekid3163]

Good question Ryan, I dont know how much value an MBA would bring/it depends on your local job market and what they value more. For example in my job market it adds very little value. I would focus on trying to work on joint files with the larger commercial teams to get known and then seek an internal referral to move up. Alternatively you could switch banks and stay in the ag space but move up market, target entry level roles as credit analyst at these mid market groups and you will quickly get promoted to RM within 1-2 years assuming you have the sales ability to hold onto that role. The credit fundamentals don't change too much when you go up market, its the COI networks that change so I would focus on building up those relationships with larger clients/groups so when you do make the switch, you can hit the ground running and bring in business more quickly. Good luck!

[@RacksonRacksonRibss]

@@financekid3163 Thank you so much for the response! Valuable insight, especially that you find COI networks are likely biggest hurdle moving upstream in segment.