Uncovering the mysteries of commercial banking

On the Money From the  April 5, 2002 print edition here are over 100 distinct commercial banks in the Denver metropolitan area, not counting branches or automated facilities. Even though many view banks as some omnipotent and mysterious source of all funds, small business owners often turn to banks as the first potential source of new money. What all banks have in common is their simplicity: they are merely balance sheets upon which appear its assets and liabilities. Savvy small business owners should want their companies on that list of assets. Small businesses that use traditional commercial bank financing are in fact an asset of that bank. Persuading your banker of the worth of that asset can be a frustrating and baffling process. Cultivating relationships with bankers, speaking their language, and understanding the process of loan negotiation are critical elements of successful small business ownership. Smart small business owners will acquire access to all of the commercial banks in their area, and then analyze each one. Minimally, the analyses should include these...

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