As a small business owner, it can be somewhat nerve racking to go into the bank for the first time looking for a loan. It might even feel like you have to beg and plead your case for why the bank should even lend you money. Even worse, the bank will often ask you to sign your firstborn just to secure the loan. Well, banks act skeptical for a reason. They are not playing with their own money and there is always someone watching to make sure they are being responsible with commercial lending



Bankers love when a small business owner is organized. This usually means by coming to your first meeting prepared and with a plan. This gives the impression to the banker that you have thought through how borrowing this money would improve your company and your business. So, if you are buying a building, show how much you will save in other areas as a result of the purchase. Or maybe how securing a line of credit will save you money with bulk discounts. Show them how buying a piece of equipment will result in more revenue for your company. Prove this to them if you can. This is a great way of showing your banker that you have thought about how you will pay back the loan. In other words, you do not have some sort of \'build it and they will come\' mentality.





Strange as it may sound, most small business owners do not do these things. They come into a meeting and try to \'prove\' to the bank that they are worthy of the loan because they have always paid their bills in the past. That might be ok for a small loan, but when you get over even a few hundred dollars a month, banks get a little antsy if your financials don\'t indicate you would be able to repay. This isn\'t the way banks like to operate. Now, if your company financial statements show that your company can support a prosposed loan payment, then you are in the clear. But, if that\'s not the case, then be prepared to make your case to your banker. Its a good idea in the long run!