Discussion Points For A Loan Interview - Melissa's Case Sample
Provided by IFC's Gender Entrepreneurship Markets Program.
From her business plan summary, Melissa defined the following talking points for her interview with the bank.
Thank you for meeting with me to discuss my loan application.
- My business/product: I have a specialty clothing business. I make T-Shirts with unique designs which are either hand-painted or silk-screened.
- My customers: I have strong demand for my product. I have contracts with local businesses that need uniforms for their employees, and with specialty boutiques, in addition to selling to a small number of individual customers. I have a few competitors, because my business is so unique.
- Loan Request: I am seeking a RWF200,000 loan in order to expand my business. I have sales of RWF150,000 per year and I plan to increase my sales to RWF230,000 in one year, RWF300,000 in two years, and 1.25 million in 5 years. I plan to use the loan to buy 4 industrial size silkscreen machine, increase sewing machines by 6, and to expand my factory. The new silkscreen machine will allow me to meet larger orders for uniforms from businesses. An expanded workshop will allow me to increase employees by mid year, to store materials, and to have a showroom. With this increased capacity, I will be able to increase my sales and profit margin.
- My qualifications: I've been in business for about 6 years, managing a small business with 5 employees. I manage all aspects of the business. I have experience in the clothes making industry, where I've worked for over 15 years. I have taken an accounting class which helped me to keep by businesses books.
- Financial Status: I break even producing 900 T-Shirts per month. I have been producing 2000 T-Shirts, and I plan to increase to 4000 per month by the end of the year. My business has been profitable for the last 2 years.
- Financial Plan: My business plan includes my financial statements (a Profit and Loss Statement and a Balance Sheet), as well as a cash flow projection for the next 12 months. My sales forecast is conservative, but even so, my cash flow is positive at all times. I am able to cover the monthly loan payment and meet all of my obligations for inventory orders. I have one outstanding loan from my mother, but I do not need to start repaying this for another year.
- Collateral: I would like to offer my business machines as collateral for this loan. I also have a small house valued at RWF100,000 which I can use as collateral, if necessary. I have included a statement on my Personal Net Worth in my application.
- References: For references on my character, I suggest you contact the owners of Boutique Mabelle and The Uniform Company, both of whom buy products from me. I also buy plain T-Shirts from the T-Shirt Company on credit and he can confirm that I always pay on time.
- Invitation: I would like to invite you to visit my workshop and see my products, which I'm sure you will find to be very stylish as well as practical.
- Business Plan: I would like to leave you my business plan and loan application for your review. I will be happy to return to meet with you if you have any questions. What are the next steps in the process?
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