Venture Financing

Debt vs. Equity


Dealing with Banks

How to obtain a commercial loan for your venture


By: Venture Planning Associates



Banking Basics

Banks are businesses too. They have stockholders to whom they must report and they are highly regulated by federal and state agencies.


Steps to Open a Business Bank Account

Forms of Loans




① Remember that banks only make a profit for their stockholders by making sound loans where they can collect up front fees (points) and also collect interest on the loan as well as recoup the loan principal.

② In order to have money to loan, they must maintain adequate reserves (regulated) and may not be able to lend more money until more deposits are made.




③ The SBA does not lend money. It only provides a guarantee to banks on risky loans. In the event that you default on an SBA guaranteed loan, the bank may have the SBA (federal government) make good on all or some of the principal.


Ideas for Funding Your Startup Business

Real Ways To Finance Your Startup




④ Banks may be prohibited or will not lend to certain industries based on their corporate policy, so be sure to ask the following questions before formally approaching a bank:


What the Bank Looks for in Making a Decision

4Cs of Lending




Do you lend on these kinds of projects?

Are you lending now?

Under what conditions are you making these loans?

What information do you need to consider my request? (Get their checklist)

What is the time frame usually associated to complete a loan of this type?




After you have this information, go and develop your business plan and associated documentation.

After the Loan: Maintain Good Communication with the Bank


Executive Summary

Establish a Good Credit Rating 




PowerPoints for sale

Smart & Fast

Innovative Entrepreneur


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Have a Professional Business Plan   Relationship Banking