The Financing Concept
We have all heard people say "when you need a loan, you can't get
one" or "banks only lend money to those who don't need it". This may be the
way we feel at times but the fact of the matter is that banks are not risk takers nor are
they in the business of owning real estate or business opportunities.
A bank or lender's primary function is to LEND MONEY; therefore, any
decision's that are made in regards to loaning money are that of risk management. The
question is, how do you convince a lender that you are a good risk and will be able to
repay what you borrow.
As with any risk assessment procedure, it is understandable that people
often feel frustrated when searching for a loan.
This frustration can, in many cases, be prevented or at least minimized
by doing a little homework ahead of time.