Anyone work for a bank, loan company, or know someone that..

or know someone that does? I went to three banks already, and called them up. Hell, I even tried emailing them. Every time I ask, I just get redirected. I am working on an assignment that interests me, so I figured I would go the extra mile and talk to some banks. Basically I want to know some of the characteristics they look for when giving a small or mid-sized business a loan. Also, what financial ratios they look at, what elements come into play, and what influences this decisions. It is scary how some of them do not even have a clue. So please, if you work at a bank or have contact with someone who does can you get them to email some information on this? In the mean time, I will hop on some public transit and try in Albany, NY. I guess if you do not want a loan personally, people are reluctant to help you. (

Yeah, loan specialists at banks probably do not want to spend time to help you since they're on the clock and time is money.

Did you try contacting the SBA? Try contacting your local office, you might have better luck.

http//www.sba.gov/regions/states.html[]http//www.sba.gov/regions/states.html

hmm thanks, the SBA seems interesting. It is kind of like and advice tool for businesses? Yeah, I tried the local branches. They do not seem to know anything.

[quote1519e1cf6e="Powerbook"]hmm thanks, the SBA seems interesting. It is kind of like and advice tool for businesses? Yeah, I tried the local branches. They do not seem to know anything.[/quote1519e1cf6e]

Surely they know, but there are several reasons why they won't tell you

1) They may think that you're inquiring on behalf of a competitor
2) They may worry that you're trying to game their system
3) Their decision process may be controversial

The way lenders decide whom to lend to and at what interest rates is basically one of their primary competitive differentiators, so it's no real surprise that they're reluctant to talk to random callers...

I would suggest visiting your local library to see if there are any academic texts or other books on the banking or lending industries. The other option is to contact some professors at local colleges or universities, who might be able to give you some materials.

I have done research, read books, checked out the library, etc. Basically I know a lot about these ratios, but I was hoping I could add another source that would basically go along with my information. For example, every bank uses debt to asset ratio. This is not a secret or competetive edge. I made it clear I was no looking for their "secrets." I do see what you mean though Keith. But they could at least give some type of information. If it doesn't work out, it doesn't. I have enough info as it is. I just wish I could conduct a type of interview that would be pretty cool.

Yes, they all consider debt-to-asset ratios, but do not necessarily have the lisameli ratio requirements. THAT is where the competition comes in.

It's similar to retail sales businesses not publicly sharing their cost and profit margins. Doing so gives competitors an opportunity to barely undercut them in order to steal volume. The retail lending business is no less cut-throat, sometimes even more so. About the only publicly known competitive points between lenders are interest rates and fees.

Only when you're dealing with government sponsored or subsidized loan programs are all the terms and decision points likely to be public knowledge. Even then, maybe not ALL. For example, with VA mortgages (which I have), the government mandated debt-to-income ratios are published. But for private loans, that wouldn't likely be the case.

[quoteddc8c50af1="dmorris68"]Yes, they all consider debt-to-asset ratios, but do not necessarily have the lisameli ratio requirements. THAT is where the competition comes in.

It's similar to retail sales businesses not publicly sharing their cost and profit margins. Doing so gives competitors an opportunity to barely undercut them in order to steal volume. The retail lending business is no less cut-throat, sometimes even more so.

Only when you're dealing with government sponsored or subsidized loan programs are all the terms and decision points likely to be public knowledge. Even then, maybe not ALL. For example, with VA mortgages (which I have), the government mandated debt-to-income ratios are published. But for private loans, that wouldn't likely be the case.[/quoteddc8c50af1]

Yup. I told them I am not looking for their particular exact formula. Just the common equations that all banks use basically. Mostly I found a lot of people who did not know anything at all. So, yeah heh.

[quote27c1368b2f="Powerbook"][quote27c1368b2f="dmorris68"]Yes, they all consider debt-to-asset ratios, but do not necessarily have the lisameli ratio requirements. THAT is where the competition comes in.

It's similar to retail sales businesses not publicly sharing their cost and profit margins. Doing so gives competitors an opportunity to barely undercut them in order to steal volume. The retail lending business is no less cut-throat, sometimes even more so.

Only when you're dealing with government sponsored or subsidized loan programs are all the terms and decision points likely to be public knowledge. Even then, maybe not ALL. For example, with VA mortgages (which I have), the government mandated debt-to-income ratios are published. But for private loans, that wouldn't likely be the case.[/quote27c1368b2f]

Yup. I told them I am not looking for their particular exact formula. Just the common equations that all banks use basically. Mostly I found a lot of people who did not know anything at all. So, yeah heh.[/quote27c1368b2f]

As said above, I doubt it is that they don't know, they just don't want to share. There is no benefit to them, only downside. If you already know what ratios they use, why do you need them to tell you? You can figure out a debt to asset ratio using a balance sheet. Not like these companies are going to give you an "inside look" at their "real" ratios or something.