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Navigating the Business Loan
Guidelines for Financiers, Small-Business Owners, and Entrepreneurs
1st Edition - November 10, 2014
Author: Morton Glantz
Language: English
Paperback ISBN:9780128016985
9 7 8 - 0 - 1 2 - 8 0 1 6 9 8 - 5
eBook ISBN:9780128018064
9 7 8 - 0 - 1 2 - 8 0 1 8 0 6 - 4
The need for "back to basics" information about credit risk has not disappeared; in fact, it has grown among lenders and investors who have no easy ways to learn about their cl…Read more
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The need for "back to basics" information about credit risk has not disappeared; in fact, it has grown among lenders and investors who have no easy ways to learn about their clients. This short and readable book guides readers through core risk/performance issues. Readers learn the ways and means of running more efficient businesses, review bank and investor requirements as they evaluate funding requests, gain knowledge selling themselves, confidence in business plans, and their ability to make good on loans. They can download powerful tools such as banker’s cash flow models and forecast equations programmable into a cell or tablet. Readers can punch keys to ascertain financial needs, calculate sales growth rates calling for external financing, profits required to internally finance their firms, and ways to position revenue growth rates in equilibrium with their firm’s capital structure – a rock-solid selling point among smart lenders and investors.
The book’s "how-to," practical and systematical guide to credit and risk analysis draws upon case studies and online tools, such as videos, spreadsheets, and slides in providing a concise risk/return methodology.
Introduces ways to define and manage risk
Uses case studies and online tools to extend and apply credit analysis and business management tools
Surveys "hard" and "soft" data and ways they help lenders, other financiers, small-business owners, and entrepreneurs spot potential problems, write optimal business plans, and deliver effective loan or /investor geared presentations
Its novel comparable, non-technical style make this book a welcome addition to any business library. Navigating the Business Loan serves undergraduate institutions offering courses in entrepreneurship and credit management, graduate students, professionals working in financial institutions, and venture capitalists and general investors. Finally to my community banker friends and to readers running their own shops: entrepreneurships, small to midsized businesses - , I have only this to add: this book was inspired and written especially for you.
Dedication
Foreword
Chapter 1: Business Structures and Funding Sources
Abstract
Short review of business structures
Selecting a financing source
What to consider before you apply
Documentation generally required for a small business loan application
Chapter 2: How Banks Evaluate Your Loan Application
Abstract
Primary evaluation
Analytic evaluation
Perspective: how lenders put it all together
Chapter 3: Is Your Financial Information Accurate and Reliable?
Abstract
The auditor’s role
How accountants record transaction data
The significance of footnotes
Accounting for contingencies
Financial instruments with off balance sheet risk
Two significant auditing storm signals
Chapter 4: Ratios Every Business Should Monitor
Abstract
What are ratios?
Sources of comparative ratios
Chapter 5: Financing Your Season
Abstract
Examples of seasonal businesses
How a successful seasonal cycle works
Unsuccessful seasonal cycles
Examples of successful seasonal cycles
Seasonal lending analysis
Preparing a cash budget (refer to Acme’s cash budget)
Exercise: preparing a cash budget
Interim seasonal ratio analysis
Defensive measures
Working capital as a defensive measure
Cash flow versus working capital analysis
The mechanics of working capital
Chapter 6: Exploring Your Business’s Nerve Center: Cash Flow
Abstract
Historical cash flow
Conclusion
Chapter 7: Interactive Business Forecasts Equations
Abstract
Sensitivity forecasting: the percentage of sales method
Introduction to the F and E equations
A simulations approach to financial forecasting
Chapter 8: Assets You Can Pledge to Support Your Business Loan
Abstract
Accounts receivable, inventory, purchase order financing, and factoring
Accounts receivable financing
The accounts receivable audit: scope and details
Factoring receivables
Purchase order financing
Advances secured by inventories
Chapter 9: What Is Your Business Worth?
Abstract
How to appraise your small business: a comprehensive outline
A Valuation appraisal template
Executive summary
Background
Enterprise’s value drivers
Choosing the length of the forecast horizon
Continuing value
Triangulating results: multiples and alternative valuation methods
No. of pages: 172
Language: English
Edition: 1
Published: November 10, 2014
Imprint: Academic Press
Paperback ISBN: 9780128016985
eBook ISBN: 9780128018064
MG
Morton Glantz
Professor Morton Glantz serves as a financial consultant, educator, and adviser to a broad spectrum of professionals, including corporate financial executives, government ministers, privatization managers, investment and commercial bankers, public accounting firms, members of merger and acquisition teams, strategic planning executives, management consultants, attorneys, and representatives of foreign governments and international banks. Professor Morton Glantz is a principal of Real Consulting and Real Options Valuation, firms specializing in risk consulting, training, certification, and advanced analytical software in the areas of risk quantification, analysis, and management solutions.
As a JP Morgan Chase (heritage bank) senior banker, Professor Glantz built a progressive career path specializing in credit analysis and credit risk management, risk grading systems, valuation models, and professional training. He was instrumental in the reorganization and development of the credit analysis module of the Bank’s Management Training Program-Finance, which at the time was recognized as one of the foremost training programs in the banking industry.
Professor Glantz is on the (adjunct) finance faculty of the Fordham Graduate School of Business. He has appeared in the Harvard University International Directory of Business and Management Scholars and Research, and has earned Fordham University Deans Award for Faculty Excellence on three occasions. He is a Board Member of the International Standards Board, International Institute of Professional Education and Research (IIPER). The IIPER is a global institute with partners and offices around the world, including the United States, Switzerland, Hong Kong, Mexico, Portugal, Singapore, Nigeria, and Malaysia. Professor Glantz is widely published in financial journals and has authored 8 books.
Affiliations and expertise
Lecturer in Finance & Business Economics, Fordham Graduate School of Business, New York, NY, USA