Re: Think like a bank
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Personal credit score....initial capital bankroll if you dont have a day job. And whether or not the buisness plan looked professional and halfway realistic.
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Why personal credit score? What is a 'halfway realistic' business plan? What specific items would you look for in the BP to make you confident that your money is safe? How much is a safe initial capital bankroll?
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Believe it or not, Banks want and need to lend out bad loans once in a while. There are some banks out thre that make the majrity of their money from collections accounts.
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The point of the exercise is to think about how you would like to lend out YOUR money, not how you thing that banks lend out their money. Lets assume that if your hypothetical borrower defaults you can recover approximately 40% of your borrowed capital. What types of things would you look for in someone who is trying to borrow YOUR money?
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