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| IN THE NEWS |
| Copyright © 2005-2008. D. Neil Berdiev. All rights reserved. |
| In The News |
Loan Financing Guide by Neil Berdiev was mentioned in an article
published in Jacksonville Business Journal
For startup or growth, plan before seeking a loan (excerpt)
February 8, 2008
Owning a business is not unlike other investments -- it requires constant
care and ongoing commitments of both time and money. Once you've
got your business off the ground, the time will come when you will
naturally start thinking about taking things to the next level.
Whether you want to add a second dining room to your restaurant or
buy new computers for your staff, how to finance these improvements
is a topic worthy of serious research. Educating yourself in such
matters will give you the confidence you need to move forward and
grow your business.
Loan seekers may want to check out resources at the local library or
bookstore. There are many books on the subject, including "Get That
Business Loan: Convince Your Banker to Say Yes," by Harley A.
Rennho; "Loan Financing Guide for Small Business Owners," by Neil
Berdiev; and "How to Get Private Business Loans: Finding Lenders,
What to Say and Sample Loan Agreements," by Lawrence Hart.
Go to Jacksonville Business Journal to read the entire article.
A review of Loan Financing Guide was featured on Entrepreneur.
com
January, 2008
In "Loan Financing Guide For Small Business Owners", investment and
brokerage expert D. Neil Berdiev draws upon his many years of
experience working with commercial lending institutions, writing as a
columnist for 'Inc.com' and 'Good News Network', and other
professional publications including the 'risk Management Association
Journal' to lay out simple, accessible, step-by-step instructions that will
enable small business owners and entrepreneurs through the process of
loan financing.
Go to www.Entrepreneur.com website to read the full review.
An article written by Neil Berdiev was featured on Open Forum by
American Express
Outgrowing your bank (excerpt)
October, 2007
At a previous job, I remember looking through customer files and
stumbling upon records of a small company that was launched as a
start-up close to 50 years ago. Today, it is a well-known technology
company trading on the NYSE. My bank had financed some of the
company’s start-up costs. However, within just a few years the
financing needs of that company increased to millions of dollars and the
bank was no longer able to support it.
Many of my former customers have experienced similar situations, and
many small-business borrowers will continue to run into this in the
future. On one hand, it is great news that your business is growing by
leaps and bounds. On the other hand, you need to invest a considerable
amount of time and effort in finding a new lender and moving your
existing financial relationship (which typically include loans, deposit
accounts, cash management services, and others) to another bank.
Go to Open Forum website or my website's Resource Section to read
the full article.
An article written by Neil Berdiev was featured (adapted) by Smart
Business Ideas Magazine - did not obtain the author's permission
Understand the basic math behind your numbers (excerpt)
September, 2007 Smart Business Ideas Magazine
"You don't have to be an absolute financial whiz to operate your own
business, but you must have a firm command of the basics, including a
solid understanding of your financial statement, an awareness of
fluctuations from one period to the next, and how those blips affect
your business. Math acumen is beside the point: these numbers are the
essence of your business, and your insight into them speaks to your
larger grasp of your operation.
Being able to converse coherently and seriously about your financials is
necessary, especially if you plan to seek financing from a lending
institution or other investor who will predicate their decision on whether
they feel you understand what's involved in keeping your enterprise on
firm economic footing."
Go to Smart Business Idea's website to read more. Adapted from Neil
Berdiev's article titled "Know Your Numbers!"
An article written by Neil Berdiev was featured (adapted) by Smart
Business Ideas Magazine
Is Your Small Business Ready for a Big Time Bank? (excerpt)
August 01, 2007
As your business grows, so too do your needs and expectations vis-a-
vis your financial institution. The bank that helped fund your startup
might not be the most appropriate entity to continue handling your
business once operations have become a full-fledged and prosperous
undertaking. If your financial relationship isn't meeting your needs and
wants in terms of loan limits, cash management services, depository
services, etc., it's time to form a new financial relationship. Just make
sure you do the necessary legwork and examine your alternatives, or you
'll end up making the move more than once.
Depending on the institution with which you're already doing business,
upgrading may be as simple as having your account transferred to
another unit within the company that specializes in handling larger
accounts.
Go to Smart Business Idea's website to read more. Adapted from Neil
Berdiev's article titled "Outgrowing Your Bank. When it is Time to Go..."
Featured on
Losing your lender (excerpt)
By Neil Berdiev
When a preferred loan officer moves on, small-business owners should
treat it as an opportunity to step back and re-evaluate their loan
relationships.
Most small business owners, at least once in their professional careers,
find themselves in a situation when their lender -- a lending officer, loan
officer, or account officer -- leaves the bank. If this hasn't happened to
you yet, chances are it will. For businesses just starting out, your
relationship may be too small for a lending institution to provide a
dedicated lender. But as your business and loan relationship grows, you
will eventually work with a "personal" lender and then fully appreciate
the benefits of having one.
Go to Yahoo! Finance, Inc.com, or my website's Resource section to
read the full article.
Featured in Kansas City Public Library Winter 2007 Newsletter
Visit Kansas City Public Library Reference Department publications for
more details.
2007 American Library Association Midwinter Conference
Loan Financing Guide was exhibited at the ALA Midwinter Conference
in January 2007 in Seattle, WA -- the only book out of 17 in its category
(Commerce / Trade) dedicated to educating small business
entrepreneurs and the only book focusing on the issues of business
financing (catalog #263).
Loan Financing Guide for Small Business Owners was mentioned on
www.WebCPA.com, a leading provider of online business news for the
tax and accounting community
"If you have small business clients looking for financing - or are looking
for it yourself -- then Loan Financing Guide for Small Business Owners
could prove very useful. It's full of advice on every aspect of getting a
loan, from what lenders are looking for to how to limit your debt
burden."
Neil Berdiev and his work was mentioned in the Society for
Competitive Intelligence Newsletter (SCIP.online)
August 10, 2006
An article by Neil Berdiev was mentioned in Grant Thornton's
Financial Institutions Newsletter www.gt.com
Collateral in the 21st Century
June 27, 2006
"This article instructs readers on how to deal with unusual collateral
situations to ensure a sound credit decision. To help lenders avoid taking
excessive risks while not turning away good loans, the author examines
the issues they face and offers possible resources. In today’s
marketplace, typical borrowers tend to be businesses with tight or
marginal cash flow, which is when collateral becomes an especially
important element of sound loan structure. Physical collateral (like
inventory and equipment) is becoming a thing of the past as an
increasing number of loans are secured by collateral appearing only on a
company’s books. This can range from accounts receivable of varying
quality to marketable papers (a liquor license or sellable service contracts
that can be assigned value). With this in mind, it is also important to
note that it is up to each individual institution to stay in touch with the
business environment in order to address the newly emerging risks that
come with unusual collateral."
Boston Metro, Philadelphia Metro, and New York Metro
Going it alone (excerpt)
By Wafa Musitief
June 12, 2006
RANDELL JACKSON was a junior at the University of Pennsylvania,
studying philosophy and interning at Wachovia Financial, when he
decided to venture out and establish his own business, a clothing line
company called Kein Ende.
“I realized that the energy and heartfelt desire God gave me could not be
exercised nor matured behind the doors of another company,” Jackson
says.
Funding
But getting started wasn’t an easy process. “Funding the business was a
learning experience. I realized that when one is fresh in the marketplace,
no bank wants to give you a chance.”
Jackson’s experience is not uncommon, according to Neil Berdiev, a
small business coach with 10 years in the financial service industry and
author of the “Loan Financing Guide,” a guide that helps small business
owners understand the expectations of lenders and teaches them how to
increase their chances of loan approval and repayment.
Go to Metro's website to read the full article.
Los Angeles Times
Earnings and growth bring more options for borrowing (excerpt)
By Walter Hamilton, Times Staff Writer
May 16, 2006
Most small businesses have to borrow money.
The challenge is deciding which type of financing is right.
Start-ups typically have few options other than tapping their savings and
borrowing from friends. And the options remain limited for companies
with weak profits or spotty credit histories.
But businesses that are profitable and growing can borrow from a
variety of sources. Here is a look at some of them:
Bank loans. The first stop for many small businesses is a bank.
Many business owners focus solely on the interest rate and fees they'll
be charged. But there are other considerations, experts say.
Competition among banks means loan rates may not differ much, said
Neil Berdiev, a small-business consultant in Arlington, Mass., and author
of "Loan Financing Guide for Small Business Owners."
Go to Los Angeles Times' website to read the full article.
Banker and Tradesman, Boston, MA
'Loan Financing Guide' author enjoys educating the experts (excerpt)
By Andrea Gregory, reporter
May 08, 2006
Sometimes it seems that lenders and borrowers are speaking different
languages, according to D. Neil Berdiev, who calls himself “an expert in
educating business experts.”
Berdiev’s newly released book, “Loan Financing Guide for Small
Business Owners,” is intended to bridge the gap between the borrowers
and the lenders, shedding a little light onto how each side of the equation
works and how to avoid some of the snags that borrowers and lenders
come across in today’s marketplace.
“I felt like people weren’t actually speaking the same language,” he said.
“I really wanted to bridge that gap. I felt like people need this book
now.”
Go to Banker and Tradesman's website to read the full article.
Michigan Small Business & Technology Development Center
An excerpt was published in the Spring 2006 newsletter
Frequently asked lending questions (excerpt)
By Neil Berdiev
April 2006
If there is one thing I can recommend, it would be the following: Show
lenders by your every action that you will do everything possible to
repay the loan, and how you plan to fulfill this promise. Don't bother
verbalizing this -- words mean nothing to a lender. Actions are the most
persuasive statement.
Here are some ways to demonstrate to a lender your trustworthiness:
Verifiable examples of difficult personal and business situations that
threatened loan repayment, but you kept your word and paid off your
debt obligations.
Go to Inc.com or my website's Resource section to read more.
Good News Network
How to get a small business loan (excerpt)
By Neil Berdiev
March 7, 2006
When I finished writing my Loan Financing Guide for Small Business
Owners, I realized that the book is only a small step toward the
achievement of my goal to develop training tools and resources that are
easy to grasp and actually work. Small business owners need support
and I decided to be the person to help them.
My book tour has taken me to the streets of large cities such as Boston
and Miami and smaller towns such as Arlington, Cambridge, and
Somerville, Massachusetts. I’ve documented many questions from
small business owners about loan financing. In response, I’ve written
articles and developed a seminar entitled, Preparing a Powerful Small
Business Loan Request.
Here for you now are three answers to frequently asked questions.
1. If there is one thing I need to remember when speaking with a lender,
what would it be?
If there is one thing I can recommend, it’ll be the following – show
lenders by your every action that you will do everything possible to
repay the loan and how you plan to fulfill this promise. Don’t bother
verbalizing this: Words mean nothing to a lender. Actions are the most
persuasive statement.
Go to Good News Network's website to read this and other articles.
Thompson Financial PE Week Wire
Just linking around...
By Daniel Primack
February 21, 2006
Lots of entrepreneurs think they need venture capital, when they’d
really be better off with a business loan. Lucky for them, a friend of
mine named Neil Berdiev has written a readable how-to guide for those
who don’t even know where to begin. You can order it here, or go to
www.LoanFinancingGuide.com for more info. He’ll also be at the
Harvard Coop on Tuesday March 2 at 7pm, if you’d like to ask
questions in person.
Go to Thomson's Private Equity Week by Dan Primack to read more.
Inc.com
Know your numbers! (excerpt)
By Neil Berdiev
February 2006
A lender asks a prospective borrower about an item or a trend he or she
noticed while reviewing the business's financial statements. The
business owner can't provide an explanation and without hesitation
replies, "I'll ask our accountant for an explanation."
Sounds like a reasonable answer, doesn't it? In the mind of the lender,
it's not. What the lender hears is, "Let me ask my accountant what is
happening with my company, because I sure have no idea." What's
more entertaining in this anecdote is that the borrower's accountant
probably doesn't have an adequate answer for the lender's questions
either, and he or she likely will refer the lender back to the borrower.
Unless your accountant is also your CFO or a controller, he or she, in
most cases, simply takes your QuickBooks numbers (or other software
you may use) at the end of the year, puts them into a tax return or
compiled financial statement, and conducts very basic reconciliation. He
or she does not know what is behind those numbers and the changes
from year to year -- but you should.
Lenders expect that you will be able to sit down and discuss changes in
your company's financials in detail, and generally have very little
tolerance for small-business owners who cannot explain significant
fluctuations. The majority of questions lenders will ask you about your
business financial statements will have nothing to do with accounting or
with your accountant. They are about what caused those numbers.
Simply, they are about your business.
Go to Inc.com or my website's Resource section to read this and other
articles.
Cambridge Chronicle, Cambridge, MA
A step-by-step road map for American businesses
February 2006
A commercial banker of many years, Beech Street resident Neil Berdiev
has recently completed his first book "Loan Financing Guide for Small
Business Owners." The book is available from
www.LoanFinancingGuide.com or www.amazon.com.
During his career with both large and small community banks, Berdiev
observed small business owners in various industries and locations and
uncovered the need for guidance on how to succeed in securing
business loans.
The book encompasses all essentials, including estimating the required
loan financing; finding the right lenders; applying; writing a proper
request for a loan proposal; managing the quality of the loan
relationship; understanding lenders' pet peeves and preferences; and
making sure that lenders are always on the small business owner's side.
Berdiev welcomes questions and feedback from his readers, which will
help him make his "Loan Financing Guide for Small Business Owners"
an even more powerful tool for small business owners.
Berdiev started his career in brokerage service with Fidelity
Investments. He also worked in various roles for commercial banks
such as Fleet Bank, Cambridge Trust Co. and Citizens Bank. Over the
last five years, he has participated in the analysis and approval of more
than $50 million in loans to small businesses. While still a banker, he
found his passion in coaching small business owners on how to secure
loans financing and manage financially successful companies.
Berdiev is also a columnist for Inc.com, providing advice on the issues
surrounding small business loans.
Go to Cambridge Chronicle's website to read the article.
published in Jacksonville Business Journal
For startup or growth, plan before seeking a loan (excerpt)
February 8, 2008
Owning a business is not unlike other investments -- it requires constant
care and ongoing commitments of both time and money. Once you've
got your business off the ground, the time will come when you will
naturally start thinking about taking things to the next level.
Whether you want to add a second dining room to your restaurant or
buy new computers for your staff, how to finance these improvements
is a topic worthy of serious research. Educating yourself in such
matters will give you the confidence you need to move forward and
grow your business.
Loan seekers may want to check out resources at the local library or
bookstore. There are many books on the subject, including "Get That
Business Loan: Convince Your Banker to Say Yes," by Harley A.
Rennho; "Loan Financing Guide for Small Business Owners," by Neil
Berdiev; and "How to Get Private Business Loans: Finding Lenders,
What to Say and Sample Loan Agreements," by Lawrence Hart.
Go to Jacksonville Business Journal to read the entire article.
A review of Loan Financing Guide was featured on Entrepreneur.
com
January, 2008
In "Loan Financing Guide For Small Business Owners", investment and
brokerage expert D. Neil Berdiev draws upon his many years of
experience working with commercial lending institutions, writing as a
columnist for 'Inc.com' and 'Good News Network', and other
professional publications including the 'risk Management Association
Journal' to lay out simple, accessible, step-by-step instructions that will
enable small business owners and entrepreneurs through the process of
loan financing.
Go to www.Entrepreneur.com website to read the full review.
An article written by Neil Berdiev was featured on Open Forum by
American Express
Outgrowing your bank (excerpt)
October, 2007
At a previous job, I remember looking through customer files and
stumbling upon records of a small company that was launched as a
start-up close to 50 years ago. Today, it is a well-known technology
company trading on the NYSE. My bank had financed some of the
company’s start-up costs. However, within just a few years the
financing needs of that company increased to millions of dollars and the
bank was no longer able to support it.
Many of my former customers have experienced similar situations, and
many small-business borrowers will continue to run into this in the
future. On one hand, it is great news that your business is growing by
leaps and bounds. On the other hand, you need to invest a considerable
amount of time and effort in finding a new lender and moving your
existing financial relationship (which typically include loans, deposit
accounts, cash management services, and others) to another bank.
Go to Open Forum website or my website's Resource Section to read
the full article.
An article written by Neil Berdiev was featured (adapted) by Smart
Business Ideas Magazine - did not obtain the author's permission
Understand the basic math behind your numbers (excerpt)
September, 2007 Smart Business Ideas Magazine
"You don't have to be an absolute financial whiz to operate your own
business, but you must have a firm command of the basics, including a
solid understanding of your financial statement, an awareness of
fluctuations from one period to the next, and how those blips affect
your business. Math acumen is beside the point: these numbers are the
essence of your business, and your insight into them speaks to your
larger grasp of your operation.
Being able to converse coherently and seriously about your financials is
necessary, especially if you plan to seek financing from a lending
institution or other investor who will predicate their decision on whether
they feel you understand what's involved in keeping your enterprise on
firm economic footing."
Go to Smart Business Idea's website to read more. Adapted from Neil
Berdiev's article titled "Know Your Numbers!"
An article written by Neil Berdiev was featured (adapted) by Smart
Business Ideas Magazine
Is Your Small Business Ready for a Big Time Bank? (excerpt)
August 01, 2007
As your business grows, so too do your needs and expectations vis-a-
vis your financial institution. The bank that helped fund your startup
might not be the most appropriate entity to continue handling your
business once operations have become a full-fledged and prosperous
undertaking. If your financial relationship isn't meeting your needs and
wants in terms of loan limits, cash management services, depository
services, etc., it's time to form a new financial relationship. Just make
sure you do the necessary legwork and examine your alternatives, or you
'll end up making the move more than once.
Depending on the institution with which you're already doing business,
upgrading may be as simple as having your account transferred to
another unit within the company that specializes in handling larger
accounts.
Go to Smart Business Idea's website to read more. Adapted from Neil
Berdiev's article titled "Outgrowing Your Bank. When it is Time to Go..."
Featured on
Losing your lender (excerpt)
By Neil Berdiev
When a preferred loan officer moves on, small-business owners should
treat it as an opportunity to step back and re-evaluate their loan
relationships.
Most small business owners, at least once in their professional careers,
find themselves in a situation when their lender -- a lending officer, loan
officer, or account officer -- leaves the bank. If this hasn't happened to
you yet, chances are it will. For businesses just starting out, your
relationship may be too small for a lending institution to provide a
dedicated lender. But as your business and loan relationship grows, you
will eventually work with a "personal" lender and then fully appreciate
the benefits of having one.
Go to Yahoo! Finance, Inc.com, or my website's Resource section to
read the full article.
Featured in Kansas City Public Library Winter 2007 Newsletter
Visit Kansas City Public Library Reference Department publications for
more details.
2007 American Library Association Midwinter Conference
Loan Financing Guide was exhibited at the ALA Midwinter Conference
in January 2007 in Seattle, WA -- the only book out of 17 in its category
(Commerce / Trade) dedicated to educating small business
entrepreneurs and the only book focusing on the issues of business
financing (catalog #263).
Loan Financing Guide for Small Business Owners was mentioned on
www.WebCPA.com, a leading provider of online business news for the
tax and accounting community
"If you have small business clients looking for financing - or are looking
for it yourself -- then Loan Financing Guide for Small Business Owners
could prove very useful. It's full of advice on every aspect of getting a
loan, from what lenders are looking for to how to limit your debt
burden."
Neil Berdiev and his work was mentioned in the Society for
Competitive Intelligence Newsletter (SCIP.online)
August 10, 2006
An article by Neil Berdiev was mentioned in Grant Thornton's
Financial Institutions Newsletter www.gt.com
Collateral in the 21st Century
June 27, 2006
"This article instructs readers on how to deal with unusual collateral
situations to ensure a sound credit decision. To help lenders avoid taking
excessive risks while not turning away good loans, the author examines
the issues they face and offers possible resources. In today’s
marketplace, typical borrowers tend to be businesses with tight or
marginal cash flow, which is when collateral becomes an especially
important element of sound loan structure. Physical collateral (like
inventory and equipment) is becoming a thing of the past as an
increasing number of loans are secured by collateral appearing only on a
company’s books. This can range from accounts receivable of varying
quality to marketable papers (a liquor license or sellable service contracts
that can be assigned value). With this in mind, it is also important to
note that it is up to each individual institution to stay in touch with the
business environment in order to address the newly emerging risks that
come with unusual collateral."
Boston Metro, Philadelphia Metro, and New York Metro
Going it alone (excerpt)
By Wafa Musitief
June 12, 2006
RANDELL JACKSON was a junior at the University of Pennsylvania,
studying philosophy and interning at Wachovia Financial, when he
decided to venture out and establish his own business, a clothing line
company called Kein Ende.
“I realized that the energy and heartfelt desire God gave me could not be
exercised nor matured behind the doors of another company,” Jackson
says.
Funding
But getting started wasn’t an easy process. “Funding the business was a
learning experience. I realized that when one is fresh in the marketplace,
no bank wants to give you a chance.”
Jackson’s experience is not uncommon, according to Neil Berdiev, a
small business coach with 10 years in the financial service industry and
author of the “Loan Financing Guide,” a guide that helps small business
owners understand the expectations of lenders and teaches them how to
increase their chances of loan approval and repayment.
Go to Metro's website to read the full article.
Los Angeles Times
Earnings and growth bring more options for borrowing (excerpt)
By Walter Hamilton, Times Staff Writer
May 16, 2006
Most small businesses have to borrow money.
The challenge is deciding which type of financing is right.
Start-ups typically have few options other than tapping their savings and
borrowing from friends. And the options remain limited for companies
with weak profits or spotty credit histories.
But businesses that are profitable and growing can borrow from a
variety of sources. Here is a look at some of them:
Bank loans. The first stop for many small businesses is a bank.
Many business owners focus solely on the interest rate and fees they'll
be charged. But there are other considerations, experts say.
Competition among banks means loan rates may not differ much, said
Neil Berdiev, a small-business consultant in Arlington, Mass., and author
of "Loan Financing Guide for Small Business Owners."
Go to Los Angeles Times' website to read the full article.
Banker and Tradesman, Boston, MA
'Loan Financing Guide' author enjoys educating the experts (excerpt)
By Andrea Gregory, reporter
May 08, 2006
Sometimes it seems that lenders and borrowers are speaking different
languages, according to D. Neil Berdiev, who calls himself “an expert in
educating business experts.”
Berdiev’s newly released book, “Loan Financing Guide for Small
Business Owners,” is intended to bridge the gap between the borrowers
and the lenders, shedding a little light onto how each side of the equation
works and how to avoid some of the snags that borrowers and lenders
come across in today’s marketplace.
“I felt like people weren’t actually speaking the same language,” he said.
“I really wanted to bridge that gap. I felt like people need this book
now.”
Go to Banker and Tradesman's website to read the full article.
Michigan Small Business & Technology Development Center
An excerpt was published in the Spring 2006 newsletter
Frequently asked lending questions (excerpt)
By Neil Berdiev
April 2006
If there is one thing I can recommend, it would be the following: Show
lenders by your every action that you will do everything possible to
repay the loan, and how you plan to fulfill this promise. Don't bother
verbalizing this -- words mean nothing to a lender. Actions are the most
persuasive statement.
Here are some ways to demonstrate to a lender your trustworthiness:
- Evidence of repayment of past business loans
- Evidence of repayment of past personal loans
- Absence of or no recent delinquencies
- Absence of or no recent derogatory information from personal or
business creditors - Evidence of timely payments to your suppliers
Verifiable examples of difficult personal and business situations that
threatened loan repayment, but you kept your word and paid off your
debt obligations.
Go to Inc.com or my website's Resource section to read more.
Good News Network
How to get a small business loan (excerpt)
By Neil Berdiev
March 7, 2006
When I finished writing my Loan Financing Guide for Small Business
Owners, I realized that the book is only a small step toward the
achievement of my goal to develop training tools and resources that are
easy to grasp and actually work. Small business owners need support
and I decided to be the person to help them.
My book tour has taken me to the streets of large cities such as Boston
and Miami and smaller towns such as Arlington, Cambridge, and
Somerville, Massachusetts. I’ve documented many questions from
small business owners about loan financing. In response, I’ve written
articles and developed a seminar entitled, Preparing a Powerful Small
Business Loan Request.
Here for you now are three answers to frequently asked questions.
1. If there is one thing I need to remember when speaking with a lender,
what would it be?
If there is one thing I can recommend, it’ll be the following – show
lenders by your every action that you will do everything possible to
repay the loan and how you plan to fulfill this promise. Don’t bother
verbalizing this: Words mean nothing to a lender. Actions are the most
persuasive statement.
Go to Good News Network's website to read this and other articles.
Thompson Financial PE Week Wire
Just linking around...
By Daniel Primack
February 21, 2006
Lots of entrepreneurs think they need venture capital, when they’d
really be better off with a business loan. Lucky for them, a friend of
mine named Neil Berdiev has written a readable how-to guide for those
who don’t even know where to begin. You can order it here, or go to
www.LoanFinancingGuide.com for more info. He’ll also be at the
Harvard Coop on Tuesday March 2 at 7pm, if you’d like to ask
questions in person.
Go to Thomson's Private Equity Week by Dan Primack to read more.
Inc.com
Know your numbers! (excerpt)
By Neil Berdiev
February 2006
A lender asks a prospective borrower about an item or a trend he or she
noticed while reviewing the business's financial statements. The
business owner can't provide an explanation and without hesitation
replies, "I'll ask our accountant for an explanation."
Sounds like a reasonable answer, doesn't it? In the mind of the lender,
it's not. What the lender hears is, "Let me ask my accountant what is
happening with my company, because I sure have no idea." What's
more entertaining in this anecdote is that the borrower's accountant
probably doesn't have an adequate answer for the lender's questions
either, and he or she likely will refer the lender back to the borrower.
Unless your accountant is also your CFO or a controller, he or she, in
most cases, simply takes your QuickBooks numbers (or other software
you may use) at the end of the year, puts them into a tax return or
compiled financial statement, and conducts very basic reconciliation. He
or she does not know what is behind those numbers and the changes
from year to year -- but you should.
Lenders expect that you will be able to sit down and discuss changes in
your company's financials in detail, and generally have very little
tolerance for small-business owners who cannot explain significant
fluctuations. The majority of questions lenders will ask you about your
business financial statements will have nothing to do with accounting or
with your accountant. They are about what caused those numbers.
Simply, they are about your business.
Go to Inc.com or my website's Resource section to read this and other
articles.
Cambridge Chronicle, Cambridge, MA
A step-by-step road map for American businesses
February 2006
A commercial banker of many years, Beech Street resident Neil Berdiev
has recently completed his first book "Loan Financing Guide for Small
Business Owners." The book is available from
www.LoanFinancingGuide.com or www.amazon.com.
During his career with both large and small community banks, Berdiev
observed small business owners in various industries and locations and
uncovered the need for guidance on how to succeed in securing
business loans.
The book encompasses all essentials, including estimating the required
loan financing; finding the right lenders; applying; writing a proper
request for a loan proposal; managing the quality of the loan
relationship; understanding lenders' pet peeves and preferences; and
making sure that lenders are always on the small business owner's side.
Berdiev welcomes questions and feedback from his readers, which will
help him make his "Loan Financing Guide for Small Business Owners"
an even more powerful tool for small business owners.
Berdiev started his career in brokerage service with Fidelity
Investments. He also worked in various roles for commercial banks
such as Fleet Bank, Cambridge Trust Co. and Citizens Bank. Over the
last five years, he has participated in the analysis and approval of more
than $50 million in loans to small businesses. While still a banker, he
found his passion in coaching small business owners on how to secure
loans financing and manage financially successful companies.
Berdiev is also a columnist for Inc.com, providing advice on the issues
surrounding small business loans.
Go to Cambridge Chronicle's website to read the article.
| Loan Financing Guide for Small Business Owners |
| "Empowering Small Businesses" |
