Next, imagine you are a loan officer at a commercial lending financial institution. You have been presented with a loan package from a start-up company and one from a well-established company. What specific components would you require in the start-up company’s loan package to approve the requested loan? How do your lending requirements for the start-up company differ from those for the established company applying for a loan? According to our text the following are the questions most asked by finance sources for start-up businesses: ■ is the business idea solid? ■ is there a sufficient market for the product or service? ■ Are the financial projections healthy, realistic, and in line with the investor’s or lender’s funding patterns? ■ is key management described in the plan experienced and capable? ■ Does the plan clearly describe how the investors or lenders will get their money back? The answers to these questions should be found the Executive Summary, the Financials and the
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