Bankers and Artists

background abstract art with gold dollar sign in center“When bankers get together for dinner, they discuss Art.
When artists get together for dinner, they discuss Money.”
~ Oscar Wilde

Bankers have the money, control the money, determine where the money will go and who will get it.  In the vernacular, those decisions are called “loan approvals.”  Do Banks skew to the conservative when making lending decisions?  Depends on the Bank, but overall, the answer is probably “YES.”  Sure, riskier credit scenarios can find a home, along with commensurate difficult terms including higher interest rate and other factors.

That leaves the Artists, or, you, the Business Owner, out in the cold and wondering about how to obtain the capital you need to grow your business.

At Aurora Consulting, we believe the path to success for your business credit financing request lies in three factors.

The first factor is the choice of Lender.  Different Lenders have different tolerances for risk.  And, different Banks have different perspectives to find a profitable return for their Depositors’ money. Any given Bank may create lending opportunities due to a strategic decision to lend more in certain credit profile areas.  In both these types of Banks/Lenders, though the credit risk may scare away a more conservative Bank, the terms of the loan don’t have to be onerous.

We believe the second, and maybe the most important factor in credit financing success is in presentation.  We recently watched the Will Smith movie “Hitch” where he plays a coach of sorts to lovelorn men seeking to get out of their own way to find success in love.  Much of the advice “Hitch” gives has to do with presentation, the manner in which a man listens to a woman, the way he honors her presence, and more.

We think that the Loan Application and the manner in which it is presented to a Lender is the fundamental key to success, combined with the other two success factors.  That’s why we strive to ask all the same zillion questions an Underwriter may ask, why we collect so much documentation up front from our clients, and why we carefully package our loan requests to present to Lenders.

The final factor for success in credit financing is the positivity of “The Close.”   Obstacles pop up along the way in every financing transaction.  Our aim is to overcome obstacles with positive attitudes and a sharp focus on getting to the closing.  We use positive language, we seek out positive solutions; we refuse to be waylaid by negative emotions, words, challenges.  This is our Closing Attitude at Aurora Consulting.

Bringing these three success factors together is what we do at Aurora Consulting.  It’s no secret to any experienced financial professional, but it certainly feels like it’s our own secret recipe for credit financing success.

Pages from a Salvador Dali notebook including doodles and calculations of income and expenses, the artist thinking about Money.  
Pages from a Salvador Dali notebook including doodles and calculations of income and expenses, the artist thinking about Money.

Whether you are an entrepreneurial “Artist” seeking to bring your vision for success to life with business credit financing, or a Business Owner searching for the best solution for your working capital needs, let us at Aurora Consulting be your concierge to guide your financing needs to the right conclusion, the one where the Bankers embrace your “art” and release the money to fund your continuing business success story.

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Streamline Your Financing Request

Want to become a priority with the banker?

Summarizing your financing package can help to prioritize how your banker reviews your financing request.

We recently submitted a client’s financing request to one of the Lenders on our lending matrix.  Our Lender Rep. said, “Holy cow, you guys are on top of it with your summary. Not many brokers make it this easy to review the package.”

We made it easy because the client provided us with their financials. The financials were comprehensive. It’s a multi-million dollar corporation and we’re at the early stage of presenting to the lender. We want to show something that’s easily digestible. We want to ease  the process for the lender to give us a prompt review and tell us their interest in offering the financing.

Summarizing your financials is easy to do.  When you have a lot of line items that lead up to one, just one, type of deduction or one type of income source, simply summarize it. Drop it down to as few lines as possible so the lender can do a quick review and say,  “Okay, I see the picture here.”

The Lender doesn’t need to know the granular line by line details at this early stage; you want the Lender to give a fast review to gauge their interest. If the Lender expresses interest and offers a Letter of Intent for the financing, you can present the more detailed financials with your full loan application package.

For each financing request, present a one or two page statement describing the background of the business, the reason for their financing request, and, in bold, large font, the amount of our financing request.

Our presentation package for the initial Lender review is compact yet complete.  The “first glimpse” by a Lender is sufficient to tell us if that particular Lender is the right fit for our client’s request, or if we need to locate a different Lender.

Visit our Financing Fodder YouTube Playlist on how to prepare your business loan request.

Applying Sunscreen to the Status Quo

It’s summer time…the joys of barbecues, boating and the beach. Except when you fall asleep on the beach without reapplying your sunscreen. I hate when that happens!

The worst part is when you’re showered, refreshed, and ready to relax from the relaxing, the negligence kicks in. BAM! 

The savage tan you were hoping for is replaced with red, blotchy skin that stings to the touch. It’s painful, isn’t it? The raw burning pain is all we think about. We focus on seeking that remedy, that magical ointment, that will relieve the burn.

These ailments are physical…and visible. They can limit us in our mobility because they devour our thoughts with the pain while waiting for the relief to set in. When will the pain stop?

Unfortunately, there are no physical signs when we are STUCK in a RUT. And just like forgetting to apply sunscreen, there is no warning that this rut is imminent or happening as we speak.

To make matters worse, unlike the relentless focus on physical pain, we justify and defend our lack of progress. Isn’t there an ointment for that?

Think about it, the status quo is like walking around with a sunburn and not knowing it. It’s safe; it’s NOT uncomfortable. We aren’t in pain. Or are we?

Overcoming the status quo is like the ointment on the burn. As much as we try to maintain the status quo, the more we find the outside world will force us out of our comfort zone, through no fault (or desire) of our own.

There’s a big, bad, world out there waiting to spin us around in an attempt to try something new, whether we like it or not.

Is your status quo any of the following:

  • Is sales and/or marketing not your forte?
  • Do you think you don’t know how to sell?
  • Do you not like to bother people with asking them to buy from you?

Many of you may feel dread and trepidation thinking we’re intruding on someone’s privacy. What’s up with that?

What happens if YOUR service and/or product is something THEY really need? We only hurt ourselves with missing out on that next new client who wants, nay NEEDS US!!! 

We hurt ourselves by sticking to the status quo; you know, like a sunburn.

Learning how to overcome the hesitation we have about asking for someone’s business is a lot easier than you think. It’s like putting the ointment on the sunburn. Failing to overcome that hesitation results in losing money for no reason other than your awkward shyness. Failing to apply the sunscreen results in that nasty sunburn.

Pretend that sunscreen is merely a shield from your shyness and go burn it up!