by Jesse Vorton

Created on: June 29, 2010   Last Updated: July 09, 2010

When starting a new business venture, the probability of you having to deal with some major commercial bank is likely. Although these banks are in the business of making loans, they also have responsibilities to their depositors. Their main objective is to generate profit for their shareholders, not supplying you with start-up money. Now, where the business is not so longer new, and the business has demonstrated that they can make reasonable gains consistently, and then the bank will see this opportunity to loan as less risky. When speaking with a bank to request a bank loan, be sure to speak with the banks small business advisor. All entrepreneurs and small business leaders will need to make the bank manager/advisor happy. Listed below are the most common strategies for dealing with bankers.

Make your banker (or any loan lender) a part of your team: Make a quick visit to the banker before requesting a loan. Find out their criteria for accepting requests for bank loans. Find out what they want you to deliver on, and be sure to deliver accordingly. When speaking with the banker, be sure that the banker understands your products/services before making a loan application. Invite the small business advisor to your place of business, so they can see first hand your successes. Try continuously to incite excitement in the banker, about your ideas, your projected growth plans etc.

Befriend a banker: Here attempt to develop a trusting, working relationship with a banker, sometime before you ask for a loan.

Don’t surprise a banker: Keep the banker informed. By having a banker constantly updated may be a prerequisite for getting that small business loan. They let the banker know both the good and bad about the business, holding nothing back. These bankers are more likely to help, if they can fully understand your business needs as an entrepreneur. When problems arise within the venture, don’t procrastinate, inform the banker, your plans to address and utilize the implications of such problems.

Have a back-up banker: Go visiting other banks, get to know other small business advisors. Let the one banker know that you do have other options, even if you do not get approved for the loan in question.

Respect the banker’s rules: Realize that the banker must follow rules within a business just like all of us. That if the banker asks for forms and documents to be submitted by a future date, be sure to have them in on time.

Have an up-to-date plan: Justifying

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