Hey, suppliers: Lonely when you need a loan? Spurned by the bank of your dreams?
Here's some advice from Dan Terpsma, a Midwestern marketing exec at Bank of America. He helped arrange a $60 million revolving credit agreement for castings supplier Grede, which was formed from two companies that had done a total of three stints in Chapter 11.
Here are the five things Terpsma looks for when a supplier asks for a loan:
1. Management: A team that showed it could slash costs during the recession and position the company for the rebound
2. Diverse customer base: Lots of companies, lots of market segments
3. Quality production: No also-rans or usually-dependables need apply
4. Savvy ownership: Must understand the industry and have enough capital
5. New business: New contracts show a loan applicant is eager, innovative