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Welcome to this course on the basics of business loans business loans provide funds to grow your business.

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Increase profits and avoid cash crunches.

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Loans are a cash management tool that some use wisely and some misuse.

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They can help your growth explode or just blow up your business.

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I want to show you how to get the right loan for you how to use it and what to watch out for.

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I'll start by explaining where businesses can get loans.

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This course focuses on loans from banks and credit unions.

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But I'll explain other sources.

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Next I'll define words used in the lending process so we all know what I mean as I talk about loan types

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and structures will go through different types of business loans and the appropriate uses of those types.

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I'll talk about loan underwriting which is the process and criteria lenders use to decide whether to

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grant alone.

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Sometimes a borrower is too risky for Standard Bank loans so they are more likely to be funded via government

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programs like Small Business Administration loans.

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I'll talk briefly about those programs.

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I'll explain the loan documents and point out important clauses in these documents.

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It's crucial to you to understand these documents to know your rights and responsibilities.

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Before we dive into the materials I wanted to tell you a little about me and my background with banking.

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I'm Rob Stevens and I'm the founder of CFO perspective which provides financial education and consulting

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to small business owners.

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I was previously the CFO of a couple banks and a community health clinic system.

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I've been on loan approval committees.

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I've also been on loan workout committees and special asset committees which is what banks call in meetings

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where we discuss what to do with past due loans.

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The collections department at a two billion dollar credit union reported to me.

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Long story short I've seen The Good The Bad and the ugly of business lending.

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I want to show you the good and how to avoid the bad and the ugly.