1. SMALL BUSINESS BANKING Meghan Kearns NATIONAL CITY BANK Small Business Finance Sources of Capital: Borrowing

2. SMALL BUSINESS BANKING 2

3. 3  How much money are you investing or have invested?  How much money do you still need?  How long do you need the money?  What are you going to do with the money?  When and how will you repay the money?  What will you do if they don’t get the loan? What Banks Want to Know

4. SMALL BUSINESS BANKING 4  Ability to repay the loan (Cash Flow)  Prior experience in the business (Character)  Ability to manage prior affairs and financial matters (Credit)  Ability to put money into the business (Capital)  Availability of personal assets and willingness to pledge them (Collateral) How Does the Bank Decide to Make a Loan

5. SMALL BUSINESS BANKING 5 What to Bring to the Bank (Business Plan)  Details about what you are doing and overall plan  Description of business  Marketing assumptions and what makes you unique  Business financial information  Business Balance Sheet (prior three years)  Proforma Balance Sheet (with loan/equity proceeds)  Business Income Statement (tax returns and income report for prior three years)  Three year income and expense projections  Three Year Tax Returns from the Seller  Personal resume highlighting experience in this field  What are the source and use of project funds  Any special agreements such as Partnership Agreement, Purchase Contracts, Building Lease, etc.  Personal Financial Information  Personal Financial Statement or Balance Sheet  Prior three years Personal Tax Returns

6. SMALL BUSINESS BANKING 6  Record of working with new and expanding businesses  Knowledge of Credit Enhancement Programs such as SBA  Willingness to meet in the most convenient place for the client  Desire to really know your business and discuss:  Money to Finance Growth and Acquisitions  Tools to manage cash flow  Services to reduce operating costs  Investments to grow wealth or increase financial security  Techniques to reduce risk  Methods to manage personal finances What to Look for in a Bank(er)

7. SMALL BUSINESS BANKING 7 Credit – Understanding FICO 35% - Payment History 30% - Balances and total usage 15% - Longevity of trades 10% - New credit and inquires 10% - Types of credit used

8. SMALL BUSINESS BANKING 8 Contact Information Meghan Kearns Small Business Officer National City Bank 773-252-7140 Office 773-252-7131 Fax