:: Instructor-led Classes

Understanding the Business Loan Process

Course Details

Understanding the Business Loan Process is not simply a review of the “nuts and bolts” of filling out a loan application. During this course, participants will learn to view themselves and their loan request from the perspective of the lender. Beginning with the “A-B-C’s of Lending” through the “5-C’s of Credit Analysis”, participants will learn how to prepare for their meeting with the lender, presenting their written business plan, and negotiating terms. It is a series of steps that is essential for both the borrower and the lender. Upon completion of this course, participants will have a better understanding of the variety of factors that lenders utilize in their lending decisions.

Course Objectives

Upon completion, every participant should know the following:

  1. General lending principles.
  2. Types of loans available and the differences in their purpose.
  3. The role of capital and loans in small businesses.
  4. The lending process.
  5. Lender considerations for new and established businesses.

Small Business Success Skills Certificate Program

This class is eligible for the Small Business Success Certificate Program. Participants who complete six classes will receive a framed gold seal Small Business Success Certificate jointly from both The University of Texas at Austin Professional Development Center and City of Austin Small Business Development Program.

Rationale

For most, when thinking of applying for a loan, anxiety sets in. The purpose of this class is to help eliminate that anxiety by providing participants with a clear understanding of the loan process, from obtaining applications to the top 10 mistakes made when applying for a loan.

“Anxiety is the hand maiden of creativity.” — T.S. Eliot
“Anxiety is the space between the ‘now’ and the ‘then.’” — Richard Abell
“You have to learn the rules of the game. And then you have to play better than anyone else.” — Albert Einstein

Required Material

None

Prior to Class

N/A

Type of Course

Short course — 3 hours

Course Outline

Part 1 — General Lending Principles

Part 2 — Types of Loans Available and Their Purposes

  • Short-term loans (working capital)
  • Intermediate-term loans (equipment)
  • Long-term loans (real estate)

Part 3 — The role of Capital and Loans in Small Businesses

  • Undercapitalization
  • Financing alternatives

Part 4 — The Lending Process

  • Mistakes made when applying for a loan

Part 5 — Lender Considerations

  • Established Businesses
  • New Businesses

Summary and Guide to Resources for Continued Development

City of Austin Small Business Development Center

Instructor(s)

Coordinator(s)

Questions about this course?

    512-471-9971
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