Business Loan Strategies and Follow Ups
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Questions and Answers

What is the percentage of success for leads after 7 days?

  • 9.44% (correct)
  • 79.38%
  • 90.56%
  • 60.13%
  • What is the primary purpose of the RP Package in marketing?

  • To compile customer feedback
  • To provide training materials
  • To promote social media engagement
  • To establish a referral partner (correct)
  • How many phone calls should be made on Day 3 of the follow-up cadence?

  • 4
  • 2
  • 3 (correct)
  • 0
  • In which industry would fuel costs be a primary concern for loans?

    <p>Transportation</p> Signup and view all the answers

    What is one of the baseline questions to ask during discovery calls?

    <p>What's taking place in your business that brings us together today?</p> Signup and view all the answers

    What does Net Sales represent in a business?

    <p>Amount made with expenses subtracted</p> Signup and view all the answers

    What is the purpose of an Equipment Finance Agreement?

    <p>To outline the terms for financing equipment</p> Signup and view all the answers

    What is referred to when a client experiences Slow Pay?

    <p>Payments made slower than agreed upon terms</p> Signup and view all the answers

    What does Subordinated debt imply?

    <p>It takes a backseat to another lender's priority</p> Signup and view all the answers

    What does the term Stacking refer to in financing?

    <p>Taking multiple revenue-based loans simultaneously without transparency</p> Signup and view all the answers

    Which statement best exemplifies an inviting statement?

    <p>Help me understand, tell me more about the funding options.</p> Signup and view all the answers

    What is the primary goal related to certainty in financial discussions?

    <p>To ensure clients feel that financial decisions lead to rewards, not losses.</p> Signup and view all the answers

    Which aspect is essential in building significance with clients?

    <p>Acknowledging their importance and reinforcing their value.</p> Signup and view all the answers

    How can connection be established between a product and a client?

    <p>By emphasizing the uniqueness of the product to the client’s needs.</p> Signup and view all the answers

    What is a key element of contribution in financial discussions?

    <p>Collaboration that encourages teamwork in securing financing.</p> Signup and view all the answers

    What is a key requirement for obtaining continuous capital in a revolving line of credit?

    <p>A FICO score of 680 or higher</p> Signup and view all the answers

    Which of the following terms refers to a business structure that is not registered and is not protected as a legal entity?

    <p>Sole Proprietorship</p> Signup and view all the answers

    What document is typically required to prove ownership when applying for business financing?

    <p>Proof of Ownership</p> Signup and view all the answers

    Which of the following financing terms refers to the total amount your business generates before any expenses are deducted?

    <p>Gross Sales</p> Signup and view all the answers

    What type of business entity is characterized by its ownership being represented by shares?

    <p>Corporation</p> Signup and view all the answers

    What percentage of the business ownership is typically a concern for lenders?

    <p>50%</p> Signup and view all the answers

    What does a FICO score of over 600 generally indicate?

    <p>Moderate credit risk</p> Signup and view all the answers

    What type of financing options might be considered by a business owner?

    <p>Customizable loans</p> Signup and view all the answers

    What timeframe is typically expected for loan approval after an application?

    <p>1-2 days</p> Signup and view all the answers

    Which type of bank account is most appropriate for depositing business revenue?

    <p>Business checking account</p> Signup and view all the answers

    What is the maximum time frame for a Standard Term Loan?

    <p>1 year</p> Signup and view all the answers

    Which financing option provides ongoing access to capital?

    <p>Line of Credit</p> Signup and view all the answers

    Which of the following is NOT a financing qualification?

    <p>Specific FICO Score required</p> Signup and view all the answers

    What type of financing requires collateral?

    <p>Asset Based Lending</p> Signup and view all the answers

    Which of the following industries is restricted from receiving financing?

    <p>Adult entertainment</p> Signup and view all the answers

    What is the maximum loan size offered by NBC?

    <p>$2.5M</p> Signup and view all the answers

    Which of the following is NOT a feature of NBC's funding process?

    <p>Funding within 48 hours</p> Signup and view all the answers

    Which industry is listed as one of the most popular for NBC loans?

    <p>Health Care/Medical</p> Signup and view all the answers

    What is the maximum term length for NBC's term loans?

    <p>10 years</p> Signup and view all the answers

    Which product is focused on collateralized lending?

    <p>Asset Based Line of Credit</p> Signup and view all the answers

    Study Notes

    The First 48 Hours

    • Essential documents include a signed application and 4-6 months of bank statements.
    • Marketing Package consists of strategies for outreach.
    • Referral Partner (RP) Package enhances business connections.
    • Speed to Lead (52L) statistics indicate urgency in engagement:
      • Within 2 days, 60.13% conversion rate
      • 4 days yield 79.38%
      • 7 days achieve 90.56%
      • After 7 days, only 9.44% conversion rate remains.

    Follow Up Cadence

    • Initial follow-up on Day 1 includes 4 phone calls, 2 SMS, and 2 emails.
    • Subsequent days focus on varied communication methods, tapering off by Day 7.

    Reasons for Loans

    • Construction benefits include funding for equipment, tools, and payroll needs.
    • Healthcare sector utilizes loans for machinery, expansion, and regulatory issues.
    • Retail uses funds to settle payments with manufacturers.
    • Transportation loans cover fuel and insurance costs.

    Discovery Calls

    • Key baseline questions address business motivations, successes, and future plans.
    • Financial assessments include Monthly Gross Sales, Average Daily Balance, and number of deposits.
    • Various loan types dissected: Asset Based Loans (ABL), Equipment Financing, and Revenue-Based Financing (RBF).
    • Terms such as Daily Payments, Weekly Payments, and Monthly Payments structure repayment schedules.
    • Important financial documentation includes personal and business tax returns, Point of Sales records, and proof of ownership.

    Basic Human Needs

    • Clients seek growth and return on investment (ROI) clearly illustrated.

    Certainty

    • Assurance that financing will lead to benefits outweighing losses strengthens trust.

    Variety

    • Providing multiple financing options highlights the unique aspects of services offered.

    Significance

    • Acknowledging the client's importance elevates engagement and rapport.

    Connection

    • Building trust between product offerings and clients is crucial for collaboration.

    Contribution

    • Teamwork is emphasized in aiding clients to secure financing, fostering a sense of shared success.

    Revolving LOC Notes

    • Continuous capital availability with interest charged only on utilized amounts, up to $250k.
    • Comparable offerings to traditional banks with specific credit score and financial history criteria.

    Industry Terms

    • Terms like Legal Entity, Federal Tax EIN, Sole Proprietorship, and Corporation define business structures.
    • Merchant Cash Advance is equivalent to Revenue Based Financing, indicating flexible funding solutions.
    • Early Payoff Addendum outlines potential savings from early loan repayment.

    Financing Qualifications

    • Minimum Time in Business is 4 months with required annual revenue of $400k for approval.
    • Lenders evaluate FICO scores and allow scenarios like dismissed bankruptcies.

    NBC Program Features

    • Quickly process approvals within 24 hours post-document submission.
    • Loan sizes range from $30K to $2.5M with potential terms up to 10 years.
    • Digital application streamlines the funding process, promising expedited financial support.
    • Key sectors include Health Care, Retail, Construction, Manufacturing, and E-Commerce.

    Our Main Area of Focus

    • Emphasis on Revolving Lines of Credit, Term Loans, Revenue-Based Financing, and Equipment Financing tailored to client needs.

    Bank Style Financing

    • SBA loans provide government-backed financing options with 10-25 year terms, complemented by NBC's fast-track processes.

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    Quiz Team

    Description

    Explore essential strategies for engaging potential loan clients, including follow-up techniques and the importance of timely responses. This quiz covers key aspects of the loan application process, necessary documentation, and communication methods to enhance conversion rates. Assess your understanding of how various sectors utilize loans effectively.

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