Re: Think like a bank
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Imagine that you own a bank. A prospective small business owner comes to you for a loan. What types of things would you look for in his personality, his business plan, etc., to make you feel comfortable risking your money? What types of terms would you like to get for your risk?
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When I went for loans to start my business....they cared about only one thing. Collateral. The bank officer was not interested in even looking at my business plan...it did not matter to him if I could not secure the loan with stock, real estate or some other asset.
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That sounds like a poor way to make the decision on a loan IMO. I wouldn't loan money to someone based solely on collateral - loan defaults are highly -EV. Would you? If not, what would it take to convince YOU PERSONALLY to loan a stranger money to open a business?
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