Preparation Key to Getting Small Business Loan
By William Braddy

Most businesses need to borrow money at some time to start their operations or keep the company growing and moving in the right direction.  Unfortunately, many view going to the bank as a daunting task.

It doesn't have to be.

Here's the Number 1 thing to remember about your visit to the bank:  you are the customer, and the banker wants to find a way to meet your financial objectives.

The best thing you can do to make a loan application a more comfortable business transaction is to approach the process with the right amount of preparation and an understanding of what banks look for in a loan applicant.

In order to prescribe the appropriate product and structure, bankers are naturally going to take a close look at loan requests to make sure everything is in order.

Asking the right questions is part of our job. It allows us to understand your business and personal priorities and helps us identify your financial objectives. That way we can make sure the loan is structured in just the right way to truly fit your needs.

In addition, an experienced banker can serve as a vital resource for your company, especially when it comes to explaining the loan process and offering insight about what similar businesses are facing in the marketplace.

The ultimate goal is to build a partnership and work toward the right financial solutions for you and your company.

Banks have an obligation to look closely at any request.  A lender looks for two basic things when analyzing a loan request:  capacity and a willingness on the part of the borrower to repay debts.  A lack of either could hinder your chances of getting the funds you need.  Before making a loan request, be sure you are clear in your mind, and in the documents you provide, on how you are going to satisfy the lender on those two points.

How is the loan going to help you make more money in the future than you are making now?  You may need extra revenues to make the interest payments and repay the loan.

How are you going to show your willingness to repay the loan?  A previous history of making payments in full and on time is the best way to achieve that.