Understanding why and how banks arrive at their answers will greatly improve a company's chances of success when seeking a loan. Despite how attractive a borrower or transaction is, external macro and internal micro considerations can, and do, have an impact on bankers' decisions.
What happens once your loan-application package — complete with business summary, historical financial statements, projections, etc. — is submitted to your bankers for recommendation and approval? From the outside, the apparent black box of decision making can confuse and frustrate finance chiefs, as two seemingly comparable opportunities can yield conflicting results. Understanding why and how banks arrive at their answers will greatly improve a company's chances of success when seeking a loan. By no means exhaustive, consider the following an overview of the context and construct of commercial bank decision making.
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