Business Loans - Convincing Your Banking Loan Officer

There is no doubt that a good personal and business credit history is an invaluable asset in convincing your business banking officer for a loan. However, there are various other simple steps that you can take to secure a loan from your loan officer:

Step 1: Get to Know Your Banking Loan Officer From The Start

A major part of securing a loan is based on the merits of the entrepreneur and the business, but, be sure to establish a personal relationship with the business banking officer, it can go a long way.  A personal relationship can provide the necessary tipping point, or benefit of the doubt, to secure the loan you need.  When you begin your business, you should invite the loan officer to your business and take the products or services that you make to the bank to maintain constant visibility for leveraging the relationship when you need that loan.

Step 2: Prepare the Necessary Paperwork Beforehand

In a loan application, the licensed loan officer will submit the paperwork to a loan committee that will not ever get to see you. The only thing that they will have at their disposal is the paperwork and supporting documents that you provide. Make sure you provide as much detail and updated documentation to help move your case along. This includes tax returns, credit reports, exact nature of business, past financial details, profit margins and profitablity tables. The more detailed information will provide them with a better overall understanding of your business and will assist them in their approval process.

Step 3: Provide Professional Looking Financial Projections

You can help the business banking officer with their process by providing the necessary financial projections that are done by a CPA. You can request a sample of the financial projections that the bank typically has made and ensure that you have these prepared and attached as part of your case.  Be thourough and don't be afraid to show them who you are.

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