Meeting bank manager about loan for small business

ugg

Hi all,
I'm meeting BoI manager later this week about securing a loan for my start-up business. I've done up my business plan, cashflow, profit/loss etc but is there anything else I should bring with me? Also, should I copy business plan into bank's own template or is that a waste of time?
Any advice would be appreciated!

VO

ugg wrote: »

Hi all,
I'm meeting BoI manager later this week about securing a loan for my start-up business. I've done up my business plan, cashflow, profit/loss etc but is there anything else I should bring with me? Also, should I copy business plan into bank's own template or is that a waste of time?
Any advice would be appreciated!

I would not necessarily use their template but I would include a copy of your CV and a little personal history relevant to the business. Also any market reserach etc that you have done.

Best of luck with the meeting

keefg

ugg wrote: »

Hi all,
I'm meeting BoI manager later this week about securing a loan for my start-up business. I've done up my business plan, cashflow, profit/loss etc but is there anything else I should bring with me? Also, should I copy business plan into bank's own template or is that a waste of time?
Any advice would be appreciated!

Seeing as you already have the initial hard work done (biz plan etc) have you thought about contacting your local enterprise board?

If your business is a viable one then you would have the chance to apply for a grant of some kind or some sort of start up funding.

It worked for me, I was given a very substantial grant when I started up.

ugg

keefg wrote: »

Seeing as you already have the initial hard work done (biz plan etc) have you thought about contacting your local enterprise board?

If your business is a viable one then you would have the chance to apply for a grant of some kind or some sort of start up funding.

It worked for me, I was given a very substantial grant when I started up.

My local enterprise board has been very supportive. I've applied for two grants so far - fingers crossed I'll be successful. I've also applied for grants from my local development agency. Now, it's the bank's turn - not looking forward to this part at all!

ugg

VO wrote: »

I would not necessarily use their template but I would include a copy of your CV and a little personal history relevant to the business. Also any market reserach etc that you have done.

Best of luck with the meeting

Thanks VO

Relevant

Make sure your cash flow projections are accurate and go out a few years. Also it might help for you to do a worst case scenario version of your projections

FusionNet

Make sure your credit history is clean. You can check this yourself. If there is even the smallest black spot and Im talking something tiny from years ago they'll be a pain about it.. If they dont give you the finance try and do it anyways and enjoy sticking it to them 12 months down the road when you've made a success of it!!

ugg

What's the easiest/fastest way to check your credit history?

Bandara

get yourself a very polished accountant and bring him/her with you and let them handle any financial questions, I always lean on the bank managers quite strongly as well if they start talking rubbish about your business, most of them are not very good but like to think they know everything about every industry.

Don't be afriad to be strong with them and take them on.

Good luck

JoeTurner

ugg wrote: »

What's the easiest/fastest way to check your credit history?

Try the Irish Credit Bureau - report costs €6

http://www.icb.ie/index.php

Good luck with the meeting.

Hammertime is spot on about some bank managers not being the sharpest tools in the box. Make sure you're confident in what you're telling them and sell your ideas well and you'll be ok.

ugg

Hi all

The meeting with the bank went smoothly and I've just found out that my loan application was successful.
Having the benefit of hindsight, I advise anyone looking for a business loan to put a lot of work into their business plan and year one cashflow figures.
I also provided details of start-up funds; cashflow summary; breakdown of average sales and sources of capital, as well as a cashflow 'stress-test' showing what would happen if projected sales were down 30%. I'm not saying you need all of these but it helps to have your figures worked out - especially if you don’t want to work out the financials in front of your bank manager.
I advise anyone starting a business to ask their local partnership body if it's possible to meet with an accountant to help with their cashflow projections. I found this service really helpful and it was free! (My local partnership offers several free meetings with a solicitor, accountant and mentor, as well as various grants. The enterprise board has also been great, providing grants, advice and mentoring services).
Fortunately, I wasn't asked any overly tricky financial questions during the bank meeting. The main focus was on research I'd done, how I'd market the business and about my competitors/pricing.
If you’re meeting your bank manager about a loan you might consider bringing ID, a utility bill with your address and your business/company registration certificate if you want to set up a business bank account/apply for business credit card/chequebook on the same day. Just remember to lodge e25 in your account to cover the cost of the chequebook (BoI).
It took six days from meeting the bank to hear that my loan had been approved. During that time I received a few calls from the bank to check various details - mostly questions that were already covered in my business plan. I also had to drop in personal account statements for three months. All a bit of a palaver but worth it in the end.
So, if you're going to meet your bank about a business loan I'd advise you to bring the following:
1. Business plan with cashflow, start-up funds etc. This doesn't need to be on the bank's own template. My cashflow projections were for just one year and they seemed fine with that
2. ID and utility bill (if you want to open a business account)
3. Business/company registration certificate (from CRO - takes 5-6 weeks) if you want to open a business account
4. Personal account bank statements for three months if you're with a different bank (I wasn't asked for credit card statements or anything else)


Thanks to everyone here for the advice - and good luck to anyone looking for finance.

JoeTurner

Congrats ugg - good to hear some loans are getting approved!

Good luck with the new venture.....