Question

If you were a banker reviewing a business plan to determine if you will provide financing, what information would be most important in determining if you would support the small business or not?

Answer 1

As a banker reviewing a business plan for financing a small business, important information to consider includes financial statements, the business plan, credit history, collateral, and the management team.

Step-by-step explanation:

As a banker reviewing a business plan to determine if you will provide financing for a small business, there are several important pieces of information you would consider:

1. Financial Statements: You would want to review the business's financial statements, including the income statement, balance sheet, and cash flow statement, to assess its current financial health and profitability.
2. Business Plan: You would closely analyze the business plan to understand the company's goals, strategies, target market, competitive advantage, and growth potential.
3. Credit History: You would assess the small business's credit history, looking at its credit score, payment history, and any outstanding debts or liabilities.
4. Collateral: You would evaluate the collateral the small business can provide as security for the loan, such as property, equipment, or inventory.
5. Management Team: You would assess the experience, qualifications, and track record of the management team to determine their ability to successfully run the business and repay the loan.