Banks sometimes undeserved negative evaluations for small businesses. Especially in the current tightening of credit standards and loan companies must understand the bank loan, amounting to whom and when. Some banks do not receive a loan under $ 1 million. Therefore, if you want a credit line of $ 100,000, the collection of these banks will be in vain. Other banks, banks generally very small community, and not a loan of $ 1 million. Why? Banks lend capabilities. This is their typical size of loan and the maximum amount they will when everything is perfect lines.
If Bank A has a general limit of loan size of $ 3. 5 million and you need a loan for $ 3,000,000 and plans to your credit over the next 18 months for a salary increase to $ 5,000,000 for expansion of your business, you should not ask a bank for a loan. Assuming you qualify, Bank A is expected to approve the $ 3,000,000 loan, but not the increase in the direction you need for another bank in six to nine months store. Save yourself the trouble and the approach of banks with loan size limits of $ 6,000,000 General and more. Unfortunately, only a few banks explicitly the profile of their target customers or loans. The rest is just knowledge gained through research and relationship building, or simply by the correspondent bank to ask the staff (for example, an investment banker). read more »