A bank would rather say "no" than hurry. So make sure you start
your loan application well ahead of when you will need the money.
And follow these tips...
Pick a bank interested in your kind and size of business, not
a bank interested in just your kind and size of loan.
Answer all the banker's questions. You can't give a banker
too much information. A strong flow of information reduces
the tension between the banker and the borrower.
Ask for what you need. Everything is negotiable until you
find out it isn't. Agree to something now in return for a
future concession.
Be professional. Avoid confrontations and threats. The
bank doesn't care, and the loan officer has little to lose.
Don't automatically object to loan terms and conditions.
Instead ask for explanations. Find another way to satisfy
the bank's concerns. You can always fight later.
Don't negotiate your interest rates up front. Draw the
banker into wanting to make your loan. Then work to
improve the offered rate.
Get the loan officer out to see your business early in the loan application process. Plan a great show-and-tell. Introduce your key people- especially the financial types.
Clean up your personal and business credit reports before
applying. The single biggest non-financial consideration
in a loan is your character - your willingness to repay.
"Bullet-proof" all the assumptions underlying your cash
flow projections. The single biggest financial consideration
in a loan is the reliability of your business cash flow.
