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Key points for Borrowers, Golden Rules THE MONEY ENIGMA   During the past few years the money profession has become a very specialised game with a lot of players. The only one that has not been able to change a great deal is the borrower who still has a basic need of money. While the borrower role has not changed the lender role has become very sophisticated and diversified.   THE BANKS AND TODAY'S BUSINESS   Time was when banks took care of all a companies financial needs. Today many financial institutions (not banks) can offer the same service, in many cases probably a l;a lot better. The bank's public relations programs would lead the consumers to believe the simplicity of it all still exists. Not so. Most banks today have contracted their guidelines to specialise in narrow lending areas of their most profitable performance. The situation results in about 3 of every five loan applications being declined.   THE PRIVATE INVESTOR If you are unable to secure the loan you need through the large number of banks and other lending institutions, do not be dismayed. Start looking at the army of private investors who specialise in many different types of loans, most of them preferring some type of real estate as collateral.   THERE IS MONEY FOR MOST BUSINESSES   There is a money source for most businesses who have a loan project with any merit at all, but you will have to know how and where to search. Most lenders and investors know the market and will invest in businesses that meet certain criteria. MOST all money can be classified as debt, equity or free capital. Most loans can be classified as business or personal.   DEBT CAPITAL Just as the name implies. you borrow the money as a debt or payback loan, it will be secured or it will be unsecured. Security will range from stock to a product or real estate. Unsecured money is generally loaned to people with an excellent track record in credit or a high verifiable income.   EQUITY CAPITAL Equity Capital is furnished for a business, investment or other venture. There are many venture capitalists both private and public. They look at the profit return motive, the management experience involved in the project and how quickly they can make a lot of money. In the more domestic situations such a partnership or corporation, the getting out quickly may not be a concern.   PERSONAL FUNDS   Funds for a personal use are generally classified as consumer credits and found in conventional lending institution, i.e. Banks, credit unions and consumer finance companies.   BUSINESS FUNDS   Business or commercial funds represent funding for businesses for commercial or business use such as operating capital, development and expansion, etc. Money for business capital usually comes from banks, commercial capital companies, savings and loan, pension funds, insurance companies and many other commercial sources.   BASICS IN FINDING MONEY   Most borrowers who have difficulty in obtaining capital generally are not following the basics. Poorly structured application, not identifying their need. Not able to identify the right source. Poor communication. Typical problems that need to be addressed Elimination of unqualified loan requests that clutter the desks of loan managers. Ensure the loan request information is filled out completely before it is submitted. --------------------------------------------------------------------- TOP OF PAGE