The key questions the banker will be seeking to answer are as follows:

• Can the business repay the loan? (is cash flow greater than debt service?)
• Can you repay the loan if the business fails? (is collateral sufficient to repay the loan?)
• Does the business collect its bills?
• Does the business control its inventory?
• Does the business pay its bills?
• Are the officers committed to the business?
• Does the business have a profitable operating history?
• Does the business match its sources and uses of funds?
• Are sales growing?
• Does the business control expenses?
• Are profits increasing as a percentage of sales?
• Is there any discretionary cash flow?
• What is the future of the industry?
• Who is your competition and what are their strengths and weaknesses?