I just accepted my first bank shop because it was so highly bonused I couldn't turn it down. Now, I am a little nervous about my scenario.

My parents own a small trophy shop, so I thought I would use that as a jumping point for my scenario. I would say I own a trophy shop, will have $25,000-$50,000 in the checking account, lending needs of $125,000 and an annual revenue of around $500,000. The numbers were provided by the MSC. Will they ask a lot of additional questions in relation to the revenue? I have no idea what the lending needs would be for (expanding to plaques?? expanding online advertising??) Will she ask that? Or, will she just go over the products and then I can leave?

Is there some very boring business that I could say I own that would cause no other questions, or questions I could easily answer?

How many employees would a company that makes $500,000 a year need? It said I may have to answer that question, and I have no idea. Can I just say my husband and I, with help from family if we get in a large order? Or is that unrealistic?

I hope I am not in over my head on this one. Funny that high end hotels and fine dining are easy for me, but I have no idea how to act at a bank! This will be the first time I have stepped in a bank in more than three years, since I bought my home. I do all my banking online or over the phone with a company that specializes in online/phone banking.

First of all, the banker is unlikely to ask a whole lot of questions about the business, so don't go blurting scenario and number specifics. Yes, a family business is likely to haul in other family members for large orders. Be prepared to answer some questions, but aside from a most generic description of the business, be a little reluctant to discuss specific numbers.

A half million in revenue is likely to translate to very little net income once you have paid for space, utilities, equipment and supplies. So yes, your Mom and Pop work in the business on a regular basis, but you can't pay them much. You would like to expand and there is computerized equipment you would like to get that would allow you to engrave/carve wood plaques instead of just etching the metal. This is the 'next step' in growing your business.

As far as employees go, I'd say you and your husband, and a couple of part timers--20 hours or so per week [if they push you that far]. Medical equipment sales [and servicing] is another nice, dull business.

Thanks, I am feeling better already. The numbers were given to me by the MSC, but you think I should say them only if prompted? I am guessing that makes more sense. I would just start with "I am looking to switch banks for my business and would like more information?"

My response to, "Your company makes $500,000/yr?" would be, ""Actually, it's a bit more. I'm just being conservative. (pause and look the banker straight in the eye with a smile) There's money to be made in trophies and plaques!"

Your extended family are your employees, so don't worry about about a precise number. "If we get a big order and need help, we just have to pick up the phone."

Lending needs: You just received a sizeable order, with the promise of more to come from (pause), "Well, I don't want to jinx it by naming who it is, but we are so-o-o-o excited!"

You get the idea, keep it vague, but not too vague. If she asks a question and you don't have an answer, "That's my husband's department, so I'd only be guessing."

I did a bank shop several months ago and had to pretend I had a million plus in liquid assets. I felt panicky, like you do now, but, I assure you, if you have a solid backstory (and you do) and believe it, you'll be fine. (I was only disappointed afterwards to remember I didn't actually have $1M+ in liquid assets!)

Now, high end hotels and fine dining...they scare the beejeebers out of me and I'm too afraid to do them.

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Edited 2 time(s). Last edit at 03/20/2014 07:01PM by stilllearning.

I do the shop you describe every couple of months. Every single one I had, the bankers were grossly uninterested in "uncovering the need" portion of the presentation. Most of them would just give me the brochure and recommend the cheapest product (no monthly fee). As to the follow up, not a single one resulted in any follow up and on some of them I was not even asked for my name or any info. Kind of disappointing.

I felt the same way when I took one of these that was highly bonused. I was so uncomfortable and fretting about what they might ask about the company. It turned out to be easy as pie. It's like a normal bank shop. Few questions were asked. They didn't probe at all. They go through the normal schpiel about accounts etc. I was nervous for nothing and you probably are too. Just be sure to have your ducks in a row in case they do ask about the company..what type of business, how many employees..where do you currently bank, that's about it.

I did mine last night - sadly, she asked a ton of questions! Even wanted to know if I was a sole proprietor or whatever, and I said I was a sole proprietor, hoping that was the right answer. She asked the name of my business, how many employees we had, what we wanted the loan for (I said equipment, and then she asked what kind!). She asked where I currently banked, and I said Chase. She asked what the minimum balance you have to keep in their checking acct was! I just tried to fib and say I couldn't really remember because my balance never gets that low. It was crazy! I was glad I used a business I at least knew enough to be dangerous, since my parents own one. But my parents is tiny, and I had to try and imagine it at a much larger scale. I think it is a good idea to have a good story just in case. Whew!

It sounds like you did a great job! Doesn't it feel wonderful when it's over?

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Aw, thanks! Yes, it feels great - and the payment will be great as well! I think I would do it again, now that I have my story. The first shops with a company are always the hardest.