Arnon Dror – 3 key Tasks Entrepreneurs Need to Perform to Get Commercial Bank Loans

Arnon Dror – 3 key Tasks Entrepreneurs Need to Perform to Get Commercial Bank Loans

Arnon Dror is a popular name in the world of international business and finance. This MBA graduate from Hebrew University has over 20 years of valuable experience in this area. During this illustrious career, he has been able to accomplish many remarkable feats. One of them is occupying and discharging the prestigious office of Vice-President in numerous companies. These organizations include US channel group, Scitex, Creo Inc., Kodak, Creo Americas, and Presstek. The top managerial officials of these concerns credit him for saving their establishments from bankruptcy. They even thank him for turning their businesses into profit-earning entities. They even admit his expertise extends to many diverse fields. These include strategic planning, international taxation, cash flow management, ERP integration, internal control, and corporate mergers.

Arnon Dror – How can entrepreneurs obtain commercial loans from banks?

This financial expert says entrepreneurs need to approach commercial banks for loans. These officials of these institutions are always willing to give these proprietors the funds they need. However, they’ll do whatever is necessary to minimize the potential risk for lending out this money. After all, these individuals also run a business. This is the reason why they lay down various stringent requirements for providing such sums. They expect their borrowers to fulfill such conditions to the letter. On top of this, they ask such owners to carry out the following 3 important tasks:

  1. Providing a suitable asset as a collateral

Bankers expect their borrowers to provide a suitable asset as collateral. They hire professional valuers to determine the worth of such property or account receivable. This value should be more than the sum of money these businessmen ask for. Only then can the lenders use it as a security for the funds they provide. In the unfortunate event of the entrepreneurs being unable to repay the dues, they forfeit it. They then sell it in the open market to recover both the principal and interest charges. This is how these financiers avoid incurring avoidable bad debts. This is a fact which these entrepreneurs can’t afford to overlook.

  • Submit details regarding entrepreneurs’ business finances

When applying for commercial loans, entrepreneurs need to submit copies of their financial statements. The financiers offering such funds expect a reliable auditor to certify such documents as being authentic. Generally, such paperwork should relate to the performance of these proprietors’ organizations for the last few years. Moreover, they may even ask the entrepreneurs to provide an aging report of their account receivable and payable. The lenders then scrutinize such records to determine whether it’s worthwhile to provide this money. After all, they’ll obviously prefer to invest in businesses which history of generating profits.

  • Details regarding personal income

Entrepreneurs also need to provide relevant details of their personal income. For this, they to be able to provide certain important documents which verify this figure. These include their social security number, income tax returns, and values of assets they possess. Moreover, these businessmen need to submit particulars of any mortgages or other loans they take out.

Arnon Dror says taking out commercial loans is a necessity for businessmen. However, to receive such funds, the entrepreneurs need to perform the following 3 important tasks. Only then will bankers consider giving them the sums of money they ask for.

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