Put some skin in the game.
“If you’re starting up a business and want 100% financing, forget it. How much skin in the game varies by industry, which varies by the assets that you need. So how do you figure that out? Talk to a banker that lends to firms in your industry.†asserts Seiwert. “Don’t ask for a loan that should be funded with an equity injection by the owners. Bankers are not paid to take equity risk. We need to get it repaid because what we’re doing is lending shareholder and depositor money and they all would like it back with some interest.â€