A. A note on inventory shipments
1. What goes into a loan presentation? What should be in the bankers' document?
2. What advice would you give to students regarding the loan presentation?
3. How should the class dress?
4. Who should speak?
5. How long should the presentation be?
6. When do you get your money?
7. What are some commonly asked questions by the banker?
8. Once you get your loan, how do you get your money?
9. What is the loan process?
10. What information from students will the bank want for the loan document?
11. What other paperwork requirements go into procuring your loan?
12. How do you pay for inventory or other items you need?
13. Where should inventory be sent?
14. How do you make a deposit?
15. How do you pay back the loan?
16. Flowchart of loan payment process
17. Other help
IBE Purchasing Manual / Scanned Loan Documents

A. A note on inventory shipments

Do not send inventories to a UCM address, as the shipper will leave the product on the loading dock and you will have to deal with UCM Procurement.

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1. What goes into a loan presentation? What should be in the bankers' document?

Company name, Mission Statement, Marketing Strategy - target market and how you are going to market your product (advertising), your service project and charity information, financial statement projections - best and worst case scenario, touch on inventory (make sure you have a copy of the inventory control for questions they may have), sample of product or at least pictures, and survey results.

Sample Loan Presentation-I be baggin'

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2. What advice would you give to students regarding the loan presentation?

Make sure financial statements match up and are correct. Make sure survey results can back your decision on products. Give a date on loan payback. Survey your market! Involve everyone in the company with preparation for the presentation.

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3. How should the class dress?

Professional attire.

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4. Who should speak?

Presidents and officers.

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5. How long should the presentation be?

Generally around 30 minutes.

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6. When do you get your money?

You will have to go to the bank and sign off on the loan. Generally, you can expect money within two weeks.

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7. What are some commonly asked questions by the bankers?

How did you arrive at your price?
When, where, and how will you sell the product?
Whether the product will be popular and sell
Your competition and what makes your product unique
How you arrived at choosing your charity

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8. Once you get your loan, how do you get your money?

Go to the bank and sign the loan paperwork. This procedure takes place a few days after the loan presentation. Afterwards, an account is set up and the bank will issue temporary checks for the company.

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9. What is the loan process?

Before the bank loan, include everyone in compiling information for the loan presentation. Make power point slides that briefly outline the information and distribute booklets to the banks with detailed information that is too in-depth for slides. Reserve a time before the presentation date for everyone that will be speaking to get together and practice their roles with other members of the company pretending to be the bankers.

What to have ready
The marketing department should have detailed information about the company's marketing mix strategy. If possible, throw in an image of promotional flyers or other advertisements that you are going to use, or list locations and dates you are going to special events.

The finance department will have spreadsheets, but the final sheet ought to have the actual prices you'll be getting from your supplier as well as real fugures. The loan listed on the spreadsheet is the amount you will get; you won't get more until a few sales are made.

Depending on how strong of an impact on sales your IT department will have, their involvement in the presentation will not be much. Mention it if you will have online sales or promotions through the web.

Have a service project before the presentation. It can become a large discussion point that can generate a lot of interest.

Inventory should also be discussed. It will outline the rules you have in place to track inventories and cash.

Dress professionally and have the speakers arrive early to take care of any last-minute problems.

Presentation Flowcharts:
loan flowchart
loan flowchart

Presentation Helper
Using Body Language

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10. What information from students will the bank want for the loan document?

The bank requires the list of names, addresses, and social security numbers of each student in the company. The bank also requires three signatures on the actual loan paperwork, two of which are company members and the third being a faculty member.

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11. What other paperwork requirements go into procuring your loan?

The paperwork that goes into asking for a loan includes: excel worksheets with information of best and worst case scenarios for the company's products, a break-even analysis, a payback ratio, an income statement showing figures of costs and sales, a layout of inventory and financial control systems, and service documents.

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12. How do you pay for inventory or other items you need?

First, obtain an invoice for the merchandise from the supplier. After counting your actual shipment and inspecting it for damange, contact the supplier to determine their preferred method of payment. Verify the payment and file the invoice for your records.

For non-inventory items, the Finance department should disperse cash from the petty cash fund, and sign off on the dispersion.

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13. Where should inventory be sent?

Companies must decide on the most logical location to have their inventory sent. Get Your Lid On chose to work with a local company and therefore did not need direct shipment. Shipments were picked up from that company's warehouse, resulting in reciept of shipment in a timely manner and reduced shipping costs.

If, however, your company chooses an out-of-town supplier, the product should be shipped to the President's or Inventory Manager's residence. Do NOT address it to UCM or your company office! If you do, your product will be taken to the University Shipping Dock and you will have to deal with the Purchasing Department, which will be time-consuming or even cause the product to be turned away.

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14. How do you make a deposit?

In your company, you will designate one or two people to make weekly deposits into your bank account. The recommendation is to make at least one deposit per week, otherwise company members will have too much money on hand and the total cash intake for the company will not be known. You will go to the bank and fill out a deposit slip, and turn in the profits you have for that week. You might need to keep some money from your profits on hand for change, but that is up to your company to decide.

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15. How do you pay back the loan?

The loan the bank lets you borrow is just enough to cover all expenses to get your product to you. The money you make on your product will be the money you use to pay back the loan. All extra profits will go towards your charity.

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16. Flowchart of loan payment process

There are two options for paying back the loan:

 1. Make monthly payments to the bank at scheduled amounts including interest until the loan amount is paid back.
 2. Pay back the loan in one lump sum at the end of your business' life with one check that includes interest accrued.

We recommend you use the second option, as cash is needed during your short business span to cover expenses incurred by your business, especially during the early stages. You may also have to pay a loan origination fee, which is 2% of the loan.

Illustration 1
Illustration 2

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17. Other help:

Donations can be useful in contributing to your charity as well as company revenues. Many people may want to only contribute, but not buy a product.

Try to make a deal with your supplier so they will start making your product as soon as you are accepted for the bank loan. Selling events can generate further revenues.

Don't forget to pre-sell. Pre-selling means you arrange for purchase before you have received your product. As soon as you are decided on your product, you can pre-sell.

The earlier you start on the bank loan presentation, the better. It's easy to get caught up in exploring possible product ideas; but if you do not nail down your product soon enough, you will be taking time away from your presentations and selling agendas.

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IBE Purchasing Manual

Scanned Loan Documents

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Solutions
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