Many long time business owners will testify to the truth that getting a small business loan can be a difficult challenge, even more so for new start-up businessess. In spite of this, a loan from the bank continues to be the most dependable financing source to sustain your long term plans for your small business.

1. Getting Approved on Your First Small Business Loan
Many long time business owners will testify to the truth that getting a small business loan can be a
difficult challenge, even more so for new start-up businesses. In spite of this, a loan from the bank
continues to be the most dependable financing source to sustain your long term plans for your
small business.
In this post, let us explore the ways on how you can improve your odds of getting approved for a
small business bank loan and reduce the chance of rejection.
Establish a partnership between you and your bank. Being a new owner of a business, you might
probably not have established business credit history yet so it is recommended to seek out
financing assistance from your personal bank where you have existing savings or checking
account.
Having been a trusted client with that bank, you are more likely to be given approval. Of course,
your bank will evaluate your ability to keep up with your loan payments based on your personal
credit history or how you manage your personal accounts.
Have you taken out a personal loan from the same bank beforehand? If so, have you been
consistent with your payments until the completion of your loan’s repayment term? If you have,
then it will surely be a major factor in getting your banker’s approval for a small business loan.
Check your personal credit report. For entrepreneurs with no credit history, personal credit score
is a critical element. Before you submit your business loan application, see to it that you are aware
of your credit standing.
Get a copy of your credit file from each of the three credit reporting agencies and check your
report for possible glitches or errors that can damage your rating. If you learn that your credit
history needs improvement, you can consider raising your score first before applying for a
business loan.
Prepare Your Paperwork. Be prepared to send in the required paperwork to your bank or lender.
View this website (http://www.business.gov/finance/financing/loans/loan-checklist.html ) for a
Checklist of Prerequisites for candidates of small business loans.
On the other hand, if you are applying for a loan that is backed up by the U.S. Small Business
Administration, here is a list of the documents you must submit
(http://www.business.gov/finance/financing/loans/sba-loans/sba-loan-application.html).
Prepare for the Interview. An important part of the procedure when getting a business loan is the
actual interview. Upon meeting your loan officer, you must clearly present your business plan and
your purpose of acquiring financing.
You must exude confidence in proposing the amount of loan you need and what you plan to spend
it in your company. Will you spend it on purchasing equipment, hiring workers, building or
renovating your office, etc? Additionally, you should be able to give a doable repayment plan to
persuade your loan officer that you deserve to get an approval.
Seek Professional Advice. Before applying for a small business loan, you may check out your
local SBA office or Small Business Development Center (SBDC) to inquire about the loan
application process. You can also carry out your own research from the US Business Government

2. website (http://www.business.gov/) or the SBDC’s
(http://www.sba.gov/aboutsba/sbaprograms/sbdc/index.html) website.
Read more Getting Approved on Your First Small Business Loan
Resources for startup business loans and new business loans