10 Tips To Land A Small Business Bank Loan

10 Tips To Land A Small Business Bank Loan

(File: Image)


(Image: File)

5. Show a Record of Cash Flow

Banks love cash flow, and they’ll ensure they’ll get paid back first. They want to take the least amount of risk possible when lending you money. If you can demonstrate the ability to generate monthly cash flow, then you’ll have a chance of getting a loan from a traditional bank.

— Faraz Khan , Go Direct Lead Generation

6. Foster Relationships

I get to casually meet presidents and VPs of banks that socialize at my business club. It’s through meeting in this environment (followed up with lunch) that has allowed me to foster a trusted personal relationship and gain additional insight into what each bank specifically looks for. This time provides me the opportunity to ask all the questions I need to best position my company for investment.

— Souny West , CHiC Capital

7. Share a Good Story

We are going through this now ($3 million loan, buildout/equipment) and each bank wants to hear a good story. Some want aggressive growth plans, others want more moderate, reliable plans. Our experience is the same narrative will resonate differently with each bank, so it’s important to understand what their risk tolerance is and where you fit into their portfolio so you can tailor the story accordingly.

— Tommy Golczynski , Assured Flow Solutions, LLC

8. Give Important Information

I’m not speaking as a banker, but as a venture investor who lends to young companies. We look for teams that are into partnerships. We want to help our portfolio companies succeed. Money’s just a part of what we provide. Further, we want information. Don’t try to hold it back; it will bite you later.

— Alec Bowers , Abraxas Biosystems

9. Show Growth and Honesty

We’re a lender. When we evaluate loans requests, we take a holistic look at your business and want to see growth, but we also highly value honesty don’t shy away from the tough subjects. If you’re growing, you’ve likely had issues with revenue or bankruptcy. We aren’t going to judge you. We want to be a trusted partner who helps you grow and solves your capital problem.

— G. Krista Morgan , P2Binvestor

10. Be Reliable

Bankers need you to be as predictable as possible. If you’re paying dues on time, publishing accounts as per standards and generally going by the book, you would continue to develop a relationship. To go further, anticipate their needs and give them what they want ahead of time. Bankers are busy people and if you make their life easy, they will be forever thankful.

— Pratham Mittal , VenturePact