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Whose lending? Continued..

Got a call back from Jason Haynes, a financial specialist at Wachovia Bank, on our lending issue. The question is: if you had a pretty decent long term relationship with your banker, with all things being equal on your business end, why would your bank decline your request for additional capital?

Mr. Haynes replied that, " Wachovia's adheres to pretty conservative and strict lending procedures already, and their lending process is not so much market driven versus the quality of documentation the client is providing for the loan," your debt to income ratio- business and personal, and of course your credit scores. Increasing debt ratios, poor credit scores and improper or bad documentation, could cause your loan to be declined. So, depending solely on your relationship with your banker to get you that loan that your business need may be a bad idea, although maintaining a good relationship could help you in the long run, if your banker keeps you abreast of any new loan programs and changing criterion your bank may be offering.
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