# Confidentiality Non-Disclosure Agreements w/ Bankers - good idea?



## Annushka (Jul 26, 2006)

Before handing my business plan for review to the bankers I'd like them to sign a confidentiality agreement stating that they cannot share the information in the plan with anyone except for people in their institution who are involved in decision making. I've seen and heard this done when presenting to investors and VCs. But I haven't heard it done with loan officers. 

Does anyone have any experience with this? Have you heard others do it?


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## kriscad (Dec 18, 2006)

if you have one written up do it... but, my banker would sign it, then laugh at you and add on another point to your rate since you don't trust him lol


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## Annushka (Jul 26, 2006)

lol ouch
i know what you are saying, that's exactly why i wanted to ask around first. i don't want to start the relationship off at the wrong note. but u have to see some of these so called loan officers - fresh out of college kids who think its ok to call their teller girlfrend to stop by their booth and take a look at my idea. that's what they did to me last weekend and that's what got me thinking about it
my plan doesn't contain any top secrets that more or less experienced banker havent seen before. but i'm going to local banks, and my target market are some of the local folks and i don't anyone to know about the product until its ready to hit the market
so i'm just trying to avoid ppl messing up my plans with their unprofessional behavior


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## kriscad (Dec 18, 2006)

I just wouldn't sweat it...

Imagine being a banker... they get hit up daily to push paper for loans. My banker told me once, that he does about the same ammount of paperwork for a 10k loan as a 100k loan.

The only time a banker is going to talk to others is when you don't pay him. lol


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## Annushka (Jul 26, 2006)

i gotcha  thanks


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## Rodney (Nov 3, 2004)

> but u have to see some of these so called loan officers - fresh out of college kids who think its ok to call their teller girlfrend to stop by their booth and take a look at my idea. that's what they did to me last weekend and that's what got me thinking about it



That situation would make me nervous as well. I can see why it made you think of a confidentiality agreement.

However, the way you describe what went down, it doesn't sound like a piece of paper would make the loan officer think twice if he was thinking about sharing the idea.

Just as the banks (the place that pays him) own policies about professionalism didn't stop him from calling his teller girlfriend over to take a look at your idea.

If he's going to do it, he's going to do it (signed paper or not). He's acting as an agent of the bank, so if he does, you'll just need to go through the bank to get recourse. I think you'd have the same protection (from the bank) with our without an NDA.

It would make me think twice about taking my banking business elsewhere though. Or at least to another loan officer.


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## ronr76 (Jun 8, 2007)

Good point Rodney, bank personnel have their own internal client privacy policies they have to adhere too.

Annushka, 
you have to remember, you are the only one that has the vision for your t-shirt/business. If someone tried to take your idea, it would still be different and probably not any where near as close as to what you envision and plan to execute. 
I think its normal to be somewhat skeptical and paranoid, but don't let it consume you. 
Your ideas are your ideas. Doesn't matter if you lay down a blue print and someone steals it. Probably won't end up being what you invisioned.

For example if Johnny Cupcakes would have shared with me his idea and plans about putting muffins on shirts and I tried to steal his idea, I gaurantee I would have failed miserably in executing his vision of his idea.


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## Annushka (Jul 26, 2006)

ROn, I'm not worried about anyone stealing my ideas. I just think that first of all it tells you what level of professionalism you are dealing with. ANd in my particular case - i don't want representatives of my target market, my potential customers to know about the brand until I'm ready to launch it. This is an issue of business ethics - its a financial institution, you assume information is kept confidential. You woudn't want just anybody knowing how much you have in your savings accoutn right? And yet your money is the same as anyone else's, nothing unique or special about it. You see what i mean?


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## ronr76 (Jun 8, 2007)

Annushka said:


> ROn, I'm not worried about anyone stealing my ideas. I just think that first of all it tells you what level of professionalism you are dealing with. ANd in my particular case - i don't want representatives of my target market, my potential customers to know about the brand until I'm ready to launch it. This is an issue of business ethics - its a financial institution, you assume information is kept confidential. You woudn't want just anybody knowing how much you have in your savings accoutn right? And yet your money is the same as anyone else's, nothing unique or special about it. You see what i mean?


yes, sorry for misinterpreting your question. Its that when I see the letters NDA i automatically relate it to protecting ideas from being stolen.

But regardless, you still show signs about being a tad bit paranoid


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## Annushka (Jul 26, 2006)

Of course I am  i'm a first time entrepreneur lol. typical. thanks for the advice though, i appreciate it


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## TripleT (Apr 29, 2007)

Hi Annushka - don't worry about it - bankers (loan officers) have their own professional code of ethics, and they look at business plans all day long. 

I can't give you any hard stats - but I would say that 99.9% would have no interest in ripping off your plan.


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## Solmu (Aug 15, 2005)

Annushka said:


> You woudn't want just anybody knowing how much you have in your savings accoutn right?


While I think it's fair / reasonable / right to be concerned, sometimes we worry too much about what is and isn't private information.

For example, I don't care who knows I currently have $114.58 in my savings account... but I suppose I might be a bit more tight lipped about where all the rest of my money is distributed 

I know sometimes I realise when I take a step back I'm protecting information and being tight lipped out of habit and general paranoia, not because that particular piece of information actually matters, or because there's a chance of it being misused in this particular situation.


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## Annushka (Jul 26, 2006)

k makes sense


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## SlideMyLexus (Aug 16, 2007)

As a general rule I try to protect myself and my business as best possible. If you feel its necessary, do it.


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