I just received a great bit of information from Ron Taylor on Tourism financing that is relevant to our industry.
Jerry Dombowsky
Tourism operators including those in the hotel and motel industry generally experience greater difficulty in accessing capital when compared to other industry sectors. This is especially the case for new ventures but is also true for established operations. Reasons for this include the higher failure rate of tourism businesses compared to other industry groups.
Jerry Dombowsky
Tourism operators including those in the hotel and motel industry generally experience greater difficulty in accessing capital when compared to other industry sectors. This is especially the case for new ventures but is also true for established operations. Reasons for this include the higher failure rate of tourism businesses compared to other industry groups.
Institutional lending policies themselves are a barrier as lenders limit the number of 'risky' businesses they are willing to allow into the lending pool. When competing for their share of a lending pool that is neither broad nor deep, it is very important that operators do everything they can to improve their chances of being approved for financing.
Operators, who understand the importance of being prepared, know that well-researched and documented business plans as well as a professional presentation to lenders can make all the difference in securing needed capital. Well documented and well presented financial proposals for viable businesses can attract suitable financing even in situations where some lenders have previously said "no" to the application.
The essentials to making a successful pitch for financing should include:
1. A well documented, professional loan application, which should include an extensive marketing plan that identifies where the cash flow is coming from.
2. A well documented, well supported financial plan which should include a cash flow projection through at least one complete operating cycle, in addition to forecast income statements and balance sheets for at least 3-5 years.
3. Identification in simple terms as to how payments to the lender will be made in the event business cash flow does not meet expectations.
4. Full supporting documentation, which may include financial statements, personal net worth statements and other relevant documents.
5. Making a good first impression. First impressions are extremely important, and experienced operators know that they must be well prepared at the very first meeting to present their application.
Businesses that do not adhere to these principles will have difficulty attracting suitable financing even when they are viable.' Operators who do not have the time or the expertise to develop a financing application incorporating the above essentials should consider engaging a qualified consultant. This will greatly improve their chances of seeing the loan approved.
Ron Palmer
Taylor Capital Inc. is a capital placement firm operated by R. N. (Ron) Palmer CIM, AMP an experienced finance professional. Linked to an extensive network of capital providers both in the private and public sectors we are dedicated to providing capital arrangement services for mid-size companies located in British Columbia. We have been providing innovative financial solutions to businesses in virtually all industrial sectors since 1998.
Operators, who understand the importance of being prepared, know that well-researched and documented business plans as well as a professional presentation to lenders can make all the difference in securing needed capital. Well documented and well presented financial proposals for viable businesses can attract suitable financing even in situations where some lenders have previously said "no" to the application.
The essentials to making a successful pitch for financing should include:
1. A well documented, professional loan application, which should include an extensive marketing plan that identifies where the cash flow is coming from.
2. A well documented, well supported financial plan which should include a cash flow projection through at least one complete operating cycle, in addition to forecast income statements and balance sheets for at least 3-5 years.
3. Identification in simple terms as to how payments to the lender will be made in the event business cash flow does not meet expectations.
4. Full supporting documentation, which may include financial statements, personal net worth statements and other relevant documents.
5. Making a good first impression. First impressions are extremely important, and experienced operators know that they must be well prepared at the very first meeting to present their application.
Businesses that do not adhere to these principles will have difficulty attracting suitable financing even when they are viable.' Operators who do not have the time or the expertise to develop a financing application incorporating the above essentials should consider engaging a qualified consultant. This will greatly improve their chances of seeing the loan approved.
Ron Palmer
Taylor Capital Inc. is a capital placement firm operated by R. N. (Ron) Palmer CIM, AMP an experienced finance professional. Linked to an extensive network of capital providers both in the private and public sectors we are dedicated to providing capital arrangement services for mid-size companies located in British Columbia. We have been providing innovative financial solutions to businesses in virtually all industrial sectors since 1998.
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