I recently attended a workshop by Alan Mintz, author and trainer of bank executives. He presented a simple acronym (PARSERS) that banks everywhere use to evaluate your requests for financing. Here it is:
P – person – Do we like this person? Do they have good character?
A – amount – How much do they need in total, added up to the worst case scenario. No surprises!
R– repayment – What is their ability to repay? What is their cash flow? Cash is king!
S– security – What kind of skin does the borrower have in the game?
E – expediency – Are they a fit for the kind of business we’re looking to finance?
R– Remuneration – What services does the client currently buy? The more services purchased, the better terms we can give them.
S – Services – What other services can we see them wanting in the future?
Learn to speak the bank’s language.