3. When do you need it? Never rush to a bank with immediate
requests for money. Poor planners never attract lenders.
4. How long will you need it? The shorter the period of time entrepreneurs need the money, the more likely they are to get loans. The time at which the loan will be repaid should correspond to some important milestone in the business plan.
5. How will you repay the loan? This is the most important question. What if plans go awry? Can other income be diverted to pay off the loan? Does collateral exist? Even if a quantity of fixed assets exists, the bank may be unimpressed. Experience dictates that
assets sold at liquidation command only a fraction—five to ten cents on the dollar—of their value.