Don’t Be Too Quick to Blame the Bank
Turned down for a loan? Ami Kassar says underwriting standards don’t just protect banks. They also protect borrowers.
Good morning!
Here are today’s highlights:
John Arensmeyer says the immigration crisis is an opportunity for Congress to enact reforms that support small businesses.
A year into the Trump administration, the tariffs have created winners and losers.
Led by small, independent operators, co-working sites are experiencing a renaissance.
Jaci Russo explains how she’s following the advice to budget for profit first.
FINANCE
Ami Kassar says tough underwriting standards can protect you from making big mistakes: “I recently spoke with a prospect who runs a highly profitable, successful business and wants to grow through acquisitions. He plans to finance them with a bank—which makes sense. What he wanted to skip was the bank underwriting each individual deal. That’s not realistic. And more importantly, it’s not smart.’
“What is realistic is setting yourself up with the right bank in advance: building the relationship, putting a line of credit in place, and getting the bank aligned with your acquisition strategy. With the right partner, banks can move quickly and even agree upfront on the types of deals they’re willing to approve. But they’re still going to review each deal. And that’s a good thing.”
“Underwriting doesn’t just protect the bank—it protects you. A disciplined, unemotional review can uncover risks that are easy to miss when you’re focused on growth and momentum. Sometimes the bank’s questions are exactly what save you from a bad acquisition.” READ MORE
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