← 5 Tips on How to Secure a Small Business Loan

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By Anslem Samuel | Published December 6, 2011 | Full size is 620 × 480 pixels

Strong historical cash flows. A banker will first look at your income statement and bottom line, add back a few things that are fairly essential to the cash flow analysis, such as depreciation, which is a non-cash expense. They’ll use the business’ interest expense to come up with just a rudimentary cash flow number. “That’s important because bankers just want to have an idea of your capacity to repay their loan,” says Dillon. “So, the basic equation in a bankers mind is, ‘this is how much it’s going to cost for them to repay my loan.’”

Strong historical cash flows.

A banker will first look at your income statement and bottom line,…

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