[Marylyn]

1.What common interests are shared by bankers and business owners?

2.What type of information about a business would bankers want before extending a loan?

[Smith21000]

You could write a disputation on these question but I'll try to keep it short. Your first question is quite easy, they both want to make money! I realize I am oversimplifying the answer but in the end this is what they are both shooting for. Bankers usually act as the life blood of a business by providing necessary funds to the business in order to grow. The business may need this to purchase additional inventory, fixed assets, cover payroll, etc etc etc. The bankers obviously charge a fee (interest) for lending those funds. So when you ask about a common interest I would say they are both looking to grow within their respective industry, banker by lending and the other business by doing whatever it is they do. Your second question has a lot of gray area, it could vary greatly depending on if the business is a start-up, large or small, industry, etc etc etc. However, bankers will certainly ask for financial statements, future projections, other loans you currently hold, expectations on what you plan to do with the loan, if your offering to collateralize the loan, etc etc etc. Their will also be certain covenants to comply with and in the event you don't meet these requirements you will be subject to the very small font language found in the loan doc. (changing fees, penalties, right to collect in full, etc)AT the end of the day they want to make sure you are going to able to produce enough cash in order to pay the interest and principal, they want their money back. If they don't get their money back (you default) they want to make sure they have a right to some of your assets so they can sell these assets or collect on your receivables in order to at least get a portion of their money back. Ask yourself, if a friend approached you asking for 100,000 for her company, what questions would you ask her. Wouldn't you want to know what it is for, how her company is doing (financial statements), what she is going to use that money for, does she make enough to pay you back and if not what do you get if she defaults. I'm not sure this completely answers your question but hopefully I gave you something to think about.