On February 28th, the Daviess County CEO cohort had the opportunity to meet with two local bankers from German American Bank, David Stowers and Travis Schaffer. This insightful discussion helped prepare the students for their upcoming Bankers Day on March 17, where they will present their business plans.
During the meeting, Stowers and Schaffer provided a wealth of knowledge on key financial principles that are critical for aspiring entrepreneurs. They emphasized the importance of a well-structured business plan, explaining how it serves as a roadmap for success and a crucial tool for securing funding. The discussion also covered credit scores, ranging from 1 to 850, and how simple actions—such as opening a bank account, making payments on time, and maintaining low debt levels—can positively impact one’s score.
The bankers also delved into loan terms and lines of credit, explaining how different financing options can support business growth. They introduced the concept of pro forma financial statements, which help business owners forecast future revenues and expenses. Additionally, they highlighted the importance of paying yourself as a business owner to maintain financial stability and plan for long-term sustainability.
Other key topics included the role of co-signers in securing loans, strategies for mitigating financial risks, and the significance of collateral in lending decisions. The cohort also learned about debt-to-income (DTI) ratios, long-term liabilities (LTU), and the value of fixed assets in business operations.
The session took place at the Daviess County Economic Development office, providing a professional setting for this valuable learning experience. A big thank you to David Stowers and Travis Schaffer for sharing their time and expertise!