wlm4 at cornell.edu (Will
04-15-1995, 11:46 AM
I posted a piece of news about Wells Fargo Bank investing in a Neighborhood
Development Bank charterd by the OCC. I got several questions about the
actual structure and powers of NDB and the role Wells Fargo was playing.
So, I started searching around the web and re-visited the Wells Fargo Home
Page. Some recent changes make it VERY IMPRESSIVE. WF is right up front in
a commitment to lend $2 billion to small businesses in the next year. They
have on-line forms and resources, including the following statement of what
it takes to get a small business loan. I think this is the best statement
of traditional lending I've seen.
Speaking of useful World Wide Web resources for small busines, Royal Bank
has a GREAT free software program for small businesses. It contains a
business planning checklist, forms for common legal needs, and a few loan
applications. Sign up on-line and they'll mail it to you.
http://www.royalbank.com/
Anyway, here's the material from Wells Fargo I found at:
http://wellsfargo.com/biz/bizfin/keys.html
Keys to Getting a Loan or Line
We'll help you unlock the bank. We'll even give you the keys.
When we review your request for a loan or line of credit, we look for 7
specific items or "keys." If you come up short on one or two, it doesn't
necessarily mean you won't get your loan. But as a small business owner, you
have to remember that these keys are the basic requirements for getting a
loan. They really do unlock the bank -- and not just our bank.
1>You've been in business for the last 3 years or have an equivalent period
of related experience. Your related experience may include your
professional training and/or employment with another company in a field that
is the same or very similar to the field in which your business is established
2>You have not declared bankruptcy within the past 10 years. If you or your
business went bankrupt within the last 10 years, Wells Fargo will probably
not approve your request -- unless you have repaid your creditors.
3>You have a satisfactory business credit history. Have your paid your
creditors in a timely manner? Do you have any unpaid tax liens or judgments
against your business? Your answers ought to be "yes" and "no."
4>You have a satisfactory personal credit history. Have you paid your
accounts in a timely manner? Do you have any tax liens against you,
past-due obligations, or any occasion where two or more consecutive payments
have been missed? The moral here is pay your debts and clear up any
discrepancies before you talk to the bank
5>You have a profitable business. We look at the cash flow of your business
as the primary repayment source for the money we lend you. Your cash flow
must be able to cover the monthly payments for a new loan in addition to
your current obligations
6>You have an established bank account for your business which you have
handled successfully. Your account does not have to be at Wells Fargo,
although that may be necessary for repaying certain kinds of loans.
7>You have other assets that you could convert to cash to repay your loan in
the event of a sudden business downturn. This is the last thing any bank
wants to happen. However, we are realists. Additional assets may include
real estate, stocks, bonds, CDs or other sources of
savings.
This post transferred from the cdb-l mailing list
Development Bank charterd by the OCC. I got several questions about the
actual structure and powers of NDB and the role Wells Fargo was playing.
So, I started searching around the web and re-visited the Wells Fargo Home
Page. Some recent changes make it VERY IMPRESSIVE. WF is right up front in
a commitment to lend $2 billion to small businesses in the next year. They
have on-line forms and resources, including the following statement of what
it takes to get a small business loan. I think this is the best statement
of traditional lending I've seen.
Speaking of useful World Wide Web resources for small busines, Royal Bank
has a GREAT free software program for small businesses. It contains a
business planning checklist, forms for common legal needs, and a few loan
applications. Sign up on-line and they'll mail it to you.
http://www.royalbank.com/
Anyway, here's the material from Wells Fargo I found at:
http://wellsfargo.com/biz/bizfin/keys.html
Keys to Getting a Loan or Line
We'll help you unlock the bank. We'll even give you the keys.
When we review your request for a loan or line of credit, we look for 7
specific items or "keys." If you come up short on one or two, it doesn't
necessarily mean you won't get your loan. But as a small business owner, you
have to remember that these keys are the basic requirements for getting a
loan. They really do unlock the bank -- and not just our bank.
1>You've been in business for the last 3 years or have an equivalent period
of related experience. Your related experience may include your
professional training and/or employment with another company in a field that
is the same or very similar to the field in which your business is established
2>You have not declared bankruptcy within the past 10 years. If you or your
business went bankrupt within the last 10 years, Wells Fargo will probably
not approve your request -- unless you have repaid your creditors.
3>You have a satisfactory business credit history. Have your paid your
creditors in a timely manner? Do you have any unpaid tax liens or judgments
against your business? Your answers ought to be "yes" and "no."
4>You have a satisfactory personal credit history. Have you paid your
accounts in a timely manner? Do you have any tax liens against you,
past-due obligations, or any occasion where two or more consecutive payments
have been missed? The moral here is pay your debts and clear up any
discrepancies before you talk to the bank
5>You have a profitable business. We look at the cash flow of your business
as the primary repayment source for the money we lend you. Your cash flow
must be able to cover the monthly payments for a new loan in addition to
your current obligations
6>You have an established bank account for your business which you have
handled successfully. Your account does not have to be at Wells Fargo,
although that may be necessary for repaying certain kinds of loans.
7>You have other assets that you could convert to cash to repay your loan in
the event of a sudden business downturn. This is the last thing any bank
wants to happen. However, we are realists. Additional assets may include
real estate, stocks, bonds, CDs or other sources of
savings.
This post transferred from the cdb-l mailing list