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Daniel Feiman Talks About How to Score a Loan With 5Cs of Credit
In this episode of Enlightened Entrepreneur Podcast, Daniel Feiman, a long-time entrepreneur and expert when it comes to commercial banking, shares his knowledge and the highlights of his experience in business. His entrepreneurial journey began as a twelve year old manufacturer of handmade skateboards. Daniel also spent almost 19 years in commercial banking and left it twenty years ago to start his own consulting business, ‘Build It Backwards.’
Key Questions Asked:
- What is Daniel’s background and how did he get started in business and in commercial banking?
- What are some of the learning points he’s experienced with helping business owners with strategic consulting as well as getting started in business?
- What helped him to stay the course and develop his business for the last twenty years?
- How can they get started with mastermind group?
- Looking back if he were to do things all over again, knowing what he knows today, what would be the number one thing that he would focus on?
- What sort of mindset do start up bus owners need to have for them to withstand the rigor of the journey?
- How did Daniel get his first client?
- What are the key areas that start-up business owners need to understand and how can they go about it?
- For business owners in the audience who hasn’t had a good history but has a very good proposal, what can they do to make their history better so that the bank can look at them more fervently?
Highlights of Lessons Learned:
- Daniel and his team has developed a model (APICMAIR) working with clients and being challenged in different situations over the years which he truly find to be the foundation of much their our work.
- A challenge that most of us have in planning is not knowing how to begin; assessment tools gives you an opportunity to figure out where you are from a staffing standpoint, from a logistic standpoint, from a future standpoint, and once you’ve assessed, you will be able to create a plan and then go from there.
- One of the first things David had learned and implemented years ago was the idea of the mastermind group.
- Start-up business owners should focus on putting together either a formal or informal advisory board, which is separate from a mastermind group.
- Being a lifelong learner is something that business owners have to commit ourselves to.
- 5Ps: “Proper planning prevents poor performance.” Even a growing company needs to remember to plan so that we get the result that we’re looking for.
- If you understand what the bank is focusing on and you understand the signs of the loans they want to make, and if it happens to match what you’re looking for, go ahead and plan to make it happen.
- 5 Cs of Credit
Cash flow: Does business have the cash flow to repay the loan they’re requesting?
Credit: Does the business have a credit history of paying their obligations on time? Do the principals behind the company have good credit history?
Collateral: Tangible physical collateral, a piece of equipment,building, vehicles. What tangible collateral (if any) can you pledge to the lender as a secondary source of repayment to make them more comfortable lending you the money?
Character: Live up to your own obligation
Capacity: If things don’t go according to plan, what’s your backup plan?