Just Say No, Yes, or Yes if…

April 7, 2008 by mrbizplan.

Maybe it is a midwestern thing but lenders around here have a hard time just saying “No”.

Let me lay out a scenario for you:

1. Client comes into my office and tells me about the ultimate business opportunity. 
2. We discuss the costs and determine whether the client has the resources and qualifications possible to successfully launch this venture. 
3. Client completes market research and we write a business plan and financial projections based on sound assumptions.
4. Client goes to bank(s) and presents business plan.
5. Bank drags their feet, hems and haws, comes up with things that need to be fixed in order to do the loan.
6. Client fixes problem and fulfills requests.
7. Bank drags their feet, hems and haws…another list…repeat
8. Weeks pass with no forward motion.
9. Client gets frustrated and gos to another bank.
10. Client gets loan with no troubles.

This routine always costs the entrepreneur time and usually it costs some money, whether in the form or burned cash or opportunity cost. Now, somewhere between number 4 and number 7 above the scenario should have changed.  Someone, namely the commercial lender, should have said; “No thank you I am not interested in your request.”

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