Course Number: SBX 7470
Course Title: Keys to a Creating a Successful Loan Application
Course Hours: 9 hours

Description:
How much should I borrow? What lenders do I contact? What information does the lender need from me? Learn how to identify, create and organize the elements that make up a successful loan package. If you are interested in applying for a loan or line of credit this course is for you.

Objectives:
Upon successful completion of this course, the student will:

1. Understand 5 C’s that a lender will address as part of the loan evaluation process.
2. Identify potential funding sources (including peer to peer lending).
3. Become knowledgeable about how to determine the amount of the loan that they should apply for.
4. Recognize the types of loans that are available that match their needs.
5. Identify the key elements that make up a loan package.
6. Effectively communicate and negotiate during the loan process.

Content:

1. Learn the 5 C’s
   
   • Definitions and relevance to lenders
   • Usage and examples of each term
2. Identify potential funding sources
   • Banks
   • Peer to Peer Lending
   • Microloans
   • SBA loan guarantees and Government programs (i.e. City of Charlotte)
   • Angel Investors and Seed funding, Family and Friends
   • Guerilla finance (i.e. trade payables and negotiations)
3. Determine the loan amount to apply for
   • Using rules of thumb vs. financial projections
   • Cash flow projections to estimate capacity and need
4. Understand the types of loans
   • Term vs. revolving line of credit
   • Pros and Cons term loans vs. revolving line of credit
   • Financing a small operation (equipment, inventory, receivables)
   • Principle of matching
5. Key elements of a loan package
   • Business Plan
   • Articles of incorporation, other business documentation
   • Ongoing financial statements
   • Financial projections
   • Executive summary
6. Effectively communication and negotiating during the loan process
   • Understand the point of view of the lender or investor
   • In depth discussion about the process
   • Aspects of negotiating with financial institutions
   • You and the loan officer
   • Loan agreements and covenants
   • Commitment letters (or how do I know when I got the loan?)

Prerequisites:
None

Method of Instruction:
Traditional – Lecture

Evaluation:
Survey

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