If you’ve ever been denied a loan, as many small business owners have, you’ve experienced a feeling of unworthiness. Why am I not eligible? What have I done to damage my credit? Why don’t I deserve this money?
Chances are, you do. In fact, you may have flawless credit history and the most noble of intentions, and still find yourself facing rejection. This is because, contrary to what we may believe, banks are not overflowing fountains of wealth. Even their funds are limited, and they can’t always provide—even to those most deserving of clients.
As if securing a loan wasn’t difficult enough. Not only do you have to worry about being worthy of it, you have to set yourself apart amid a crowd of individuals who are. Here’s how to do so:
Walk into a loan meeting empty handed and that’s likely how you’ll leave. A great deal of work goes into securing a loan, much of which should be done before you even make your request.
The first step is reviewing your company records—has your business been profitable for at least three years? Most lenders won’t consider you otherwise. Make sure to also review your credit history and be ready to explain any potential red flags.
If you’ve been in contact with a lender, he or she has likely provided you with a loan application. Bring this to your meeting (obviously) along with hard copies of personal financial statements such as tax records. Banks tend to request these documents and will be pleased if you have them at the ready.
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