Topic for Discussion: What kind of information does Bob provide his banker?

Answer: He gives the banker a five-year, cash-flow projection. This gives the banker a way to understand exactly how Bob will be able to pay back loans.

Topic for Discussion: What kind of loan did Bob receive initially?

Answer: A character loan. The loan is so named because in 1952 Bob didn't have a successful business. He grew up in the community and the banker looked into Bob's eyes and took a risk that Bob would pay back the loan.

However, Bob did the work of preparing a five year cash flow projection based upon his best guesses about what he thought he could do. As you know from watching the video, 20 years later Bob was named a director of the bank that gave him his first loan.

You think about it: What could you do with a loan of one million dollars?