In these rough economic times it can be more difficult for a small business to secure new business loan rates and thus a new business loan.  Some banks are unwilling to lend money in difficult economic situations to a new business or one that is struggling.  There are ten tips offered here that could help you get the bank loan approval you need.

Finding money is always difficult when starting a new business.  There are numerous obstacles you will face.  The best way to begin your new business is through savings.  Many business owners worked for a few years to save up enough capital to appear financially solvent to a bank or other lending institution.  If you have savings to be used as collateral on a business loan you are already in great shape to approach the banks.  However, there are still a few things to consider:

1. Banks need to lend money.  A bank makes money making loans because they earn interest on the money borrowed.  Approaching the right bank is paramount to obtaining the best business loan and business loan rates. You and your small business plan should approach a bank that is familiar with your industry. A bank more comfortable with your type of business is more likely to offer you better loan rates and the loan.  Keep in mind the bank will still require a high collateral if you are just starting the business.

2. Be Prepared.  Bank loan officers are looking for several things in a lender.  They want to know you are professional, that you take the loan you are asking for seriously and above all that you can afford it.  You need to show your banker a low risk business plan.  The loan application, copies of cash flow reports, and business financial statements should be with you during the meeting.  A cover letter will also help.

3. Anticipate the Questions.  The bank loan officer will ask you a series of questions: How much money are you asking for, how long do you need the loan, what will the loan be for, when and how can you repay the debt, and what happens if you do not get the loan?  You should know these questions will be asked and what answers you can give in response.  The paperwork you have from tip 2 will help you answer the questions.

4. Be Positive.  It is amazing how many individuals attempt to obtain great business loan rates and the money they need without keeping their attitude in check.  You may have been turned down for a loan before.  You may feel your business has a few faults; however, you cannot show any of this.  You must remain positive. Never be negative or apologetic.  Confidence and a professional dress code will go a long way towards success.

5. Be Honest.  There is a difference between being honest and being negative.  When you fill out the loan application you must accurately portray your business and financial situation.  The lender can easily check on the information you provide on the loan application.  Lying or fudging the truth to look a little better gives a bad impression and is grounds for loan termination.

6. Take Your Time.  Typewriters may be old fashioned, but they still have some use in them.  If you cannot scan the loan application into your computer or download it on to your computer for modification then consider finding a typewriter.  You want to make sure all of your loan documents are neat, legible and of course, organized.  If you do have to print, take your time to print clearly and form a typed cover letter.

7. Allow the Loan Officer Time.  Just as you needed time to prepare your documents, your financial history, and yourself for asking for the loan, the loan officer will need time.  Do not push for the loan officer to get back with a decision.  Allow the person handling your information to get what they need.  It may take a day or two to get a decision, but that just means the banker is considering everything you have to offer.

8. Consider Going to Another Lender.  You do not have to approach one bank.  You can ask for a referral from an entrepreneur you know to help you approach another bank.  If you are going to try two or three lenders do so in the same time period.  You do not want any of the lenders you approach to see a former rejection.

9. Discuss Risk.  Business means there is risk.  When you approach a banker make sure you have assessed the risks of your business appropriately. Failure to do so could have them thinking you are not aware of the risk.

10. The First Loan Is Always the Hardest.