Unit 8 Negotiation Activity

Introduction

Negotiation is something that you can not avoid as a business individual. When it comes to business negotiating takes a vital place, this personal interaction between people taking and giving from each other. Your knowledge to adequately negotiate business deals can actually transform into cost profits and savings worth tens of thousands of dollars, substantial leaps in revenue, extraordinary increase in shareholder profit and top stock prices. Negotiating is thought of as a method of bargaining to reach a communal and adequate agreement.

It is important to point out that your business has ample collateral to secure the loan and that a promise of personal assets is extreme safety. As your business grows and builds a credit history, the lender's need for a guarantee should also decline and you should continue to negotiate for personal assurance. Good negotiating skills are important to help your business run smooth. As a business owner you should be capable to negotiate in different situations and with different cultures, whether it's with your boss for a raise or a loan officer for a loan. The skills, once learned, will stay with you. Your first impression regarding negotiations will create the last impression in front of any ABC person. It's important to be prepared.

Part 1: What are some factors you should consider when negotiating with the banker?

The enterprenuerial must always consider the terms when negotiating a bank loan that will accompany the loan. Some key factors you should consider when negotiating with the bankers is "the interest rate, the loan maturity date, the repayment schedule, and the loan covenants". A business owner should carefully evaluate available banks before choosing one, basing the decision on factors such as the bank’s location, the extent of services provided, and the bank’s lending policies. The interest rate chareges are usually noted in the LIBOR(LondonInterbank Offered Rate) is a rate that is lower than the...