2. Banking in Todays Environment.

3. Dave Orr Banking Professional for 22 years Expertise in Commercial Lending Employed at West Suburban Bank

4. What do banks look for when evaluating your loan applications? Earnings Financial Condition Management Experience Credit History Collateral

5. What do banks look for when evaluating your loan application? Earnings Net Income Cash Flow Available for Debt Service

6. What do banks look for when evaluating your loan application? Financial Condition Balance Sheet Analysis to support the Financial Health of the Company

7. What do banks look for when evaluating your loan application? Management Experience Resume of each owner and key management members and their industry knowledge.

8. What do banks look for when evaluating your loan application? Credit History Reports from outside agencies, references, other bank customers Evaluation of your personal credit and business credit history 3 Years Financial Statement 3 Years of Personal and Business Tax Returns Personal Financial Statement Accounts Payable and Receivables

9. What do banks look for when evaluating your loan application? Collateral List real property and other assets to be held as collateral.

10. What do banks look for when evaluating your loan application? Most loans will have at least two identifiable sources of repayment: 1.Cash flow generated from profitable operations. 2.Collateral pledged to secure the loan. 3.Personal Guaranty.

11. Trend Analysis Review of historical results to identify trends or patterns in performance.

12. Early Warning Signs May affect your relationship with your bank and loan officer.

13. Examples of Early Warning Signs Failure to provide information requested by the bank Borrower becomes hesitant to allow lender to visit their operations Frequent changes in high level management Frequent changes in accountants Borrower who expects an immediate decision.

14. Examples of Early Warning Signs Payment Delinquency Repeat Overdrafts Increase in Loan Requests Tax Liens Unusual Capital Withdrawals by Owners Communications with Lender Ceases

15. Communication with your Lender is KEY. Be honest and trust your lender. Your Lender is your partner.

16. Thank you.