Press & Media

Maxing Out

March 1990 · Inc.com · By Inc Staff

A small business gets advice on applying for loans: make the bank a profitable offer.

Michael Regan, president of Tranzact Systems, a Chicago-area freight payments ser-vice, couldn't figure out why his application for a modest small-business loan kept getting turned down. Then a venture capitalist told him, "Mike, processing a $250,000 credit line and a $750,000 long-term note costs as much as a loan for twice that. Why not make it worth the bank's while?" So, Regan rewrote his application and presto! It was approved.

"If your cash flow can justify it," advises Regan, "make the bank a profitable offer."