The following questions are to be answered.
Always remember that 90% of all businesses disappear. So bankers tend to be very cautious.
Capital: Don't look for 100% financing; you must have some equity in the business.
Collateral: What assets are available as a secondary source of repayment (just in case)
Capacity: You must understand the company's ability to absorb and repay debt.
Conditions: What are the general economic conditions and in what ways will they affect your industry and your company.
|Asset Type||Financed By||Paid Off By|
|Fluctuating Current Assets||Short Term Debt||Cash Flow|
|Permanent Current Assets||Permanent Current Liabilities||Net Profits|