Start-Up Financing – Ten Tips for the Bank Discussion and Loans


 1. Prepare thoroughly

For the founders, a written business plan (in short form) is part of the preparation for start – ups , and a description of a company and project for entrepreneurs. Think of convincing answers to possible questions.

This is served by diverse information – and counseling the person responsible for your future place of business industry – and Chamber of Commerce or Chamber of Crafts.

This is served by diverse information - and counseling the person responsible for your future place of business industry - and Chamber of Commerce or Chamber of Crafts.

2. Make an appointment in good time

Make an appointment with the bank early. But not too early: Many founders come just before the start of the foundation and can not convince the bank in the first round. Episode: time pressure.

3. Confidently occur

Act confidently. Bear in mind that it is the business of credit institutions to lend money. Do not behave like a supplicant. But do not overdo it. Rather, create trust. Make it clear that you understand your “craft” and that you will repay a loan reliably.

4. Take a consultant

You can as “gain” a start – take or corporate advisor of your choice to Bank conversation. He can give an informed opinion on important issues. In any case , be sure to agree beforehand with the conversation content and tactics. Ultimately, you need to know all the details of your project and provide information.

5. Explain profitability

Describe why the planned investments are necessary. Explain that turnover – and earnings potential you aim for. Document your arguments with numbers and related documents.

6. Obtain comparison offers

Do not just go to a bank or savings bank. Be sure to get alternative offers from other banks. Mention better deals in negotiation talks.

7. Negotiation is allowed

Talk quietly. Anyone who does not negotiate shows as a bad entrepreneur or bad entrepreneur. There are almost always scope for decisions and conditions. For this, it is worth the offerings from the competition – knowing Institute.

8. Documents support arguments

Give this to your interlocutor

a sure feeling to support a thoughtful and promising project. For this purpose, you should have these documents:

  • CV with professional career
  • Work – and certificates
  • Business plan in a nutshell. It should be described: production – and service program, sales – and customer structure, legal form, possibly liable partners, personnel planning
  • Revenue – and on budget (preferably with cost estimates)
  • Contracts (rental – / Lease -, area – Leasing – Franchise – contracts, etc.)
  • Proof of existing equity
  • liquidity plan
  • profitability forecast
  • List of collateral
  • Debt service calculation: List of expected interest – and repayment costs over the loan amount to be applied for
  • Possibly. Report on start-up consulting by a consultant

9. Write a log

Record the most important interview results in a log in writing. Send it to your contacts and ask for confirmation.

10. If the bank says “no”

That does not necessarily mean the end for your project. Ask for the reasons for the refusal. Revise your concept with the expert help of a start-up consultant. If the bank gives a lack of collateral as a reason for refusal, you should talk to the Bürgschaftsbank in your state about a support. Negotiate with other banks.

This entry was posted in Funding and tagged bankruptcy , financed by Bert Mangels . Permanent link to the entry .