Think like a lender_12022015

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  • How To Think Like A Lender- Getting To YesScott Wait, CPA, AEPRich Wait, CPA, CVA, AEP

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  • Welcome The ideal relationshipCredit Worthiness The Five Cs tests

    Capacity and Capital Collateral and Conditions

    CharacterLender Risks

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  • A borrowers image of lenders

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  • The ideal relationshipAsk when you dont need it / identify financing purpose Strategic supplierBe transparent - your story is importantGet documents in orderFind lender who understands your industryCommunicate regularlyKnow lenders competitorsOptimize cash flow

    *Lenders don't think they're funny, normal people don't think they're jokes.

  • Credit Worthiness The Five Cs tests

    Will you pay me backAndHow?

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  • Capacity & Capital

    The Capacity Test $$$$$$Borrowers viewpoint / Lenders viewpointThe ability to pay, monthlyAssets matching debtCash flow coverage, definition and analysis

    The Capital Test Debt to Equity, personal and businessUnrealistic values, net worth

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  • Collateral & ConditionsCollateral Test- Loan-to-value ratio- What is green light ratio?

    Conditions Test- Local / National economy- Borrowers financial condition- Credit rating

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  • CharacterCharacter Test is a comprehensive test- Integrity- Lifestyle

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  • Top Lender RisksElements of risk

    Inexperienced Management TeamLack of Management DepthHigh employee turnover (Key employees not locked into a contract)Contingent LiabilitiesLack of Customer DiversificationPoorly Maintained AssetsHigh Operating CostsFrequent Contract Renewals / BiddingLack of Succession PlanEmployee FraudCyber Fraud

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  • Advisors and lending process

    CPAs and trusted advisors in the lending process act as a critical advocates, liaisons, and educators to companies as well as to commercial lenders. The process can be arduous. The right advisor can make the process easier, improve the communication and the evaluation process for the lender, and help the client get to yes.

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  • Scott Wait, CPA, AEP Rich Wait, CPA,CVA, AEP scott@rswait.com rich@rswait.com 775.825.7337

    Contact Information

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    *Lenders don't think they're funny, normal people don't think they're jokes.*

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