Home topics finance finance-cash-flow Cashflow Starting Cashflow Securing a business loan Matthew Nolan September 15, 2008 Securing a business loan in the current economic climate has become harder than ever. But what can you do to get the banks on your side? Most business owners have been frustrated at some point by a bank declining their loan application. The chances of being turned down now are even higher, as banks have begun reducing their business lending and tightening approval criteria in light of the “credit crunch” and expectations of a downturn in the economy. This means proper preparation for a loan application has never been more important. Remember that your bank manager wants to approve your business, as they have sales targets and dream of a bonus like most salespeople. But they need your help to instil confidence at the bank that your business can and will repay the loan, especially to bank staff who won’t have the opportunity to meet you firsthand. With the appropriate research, face-to-face presentation and package of information, a loan approval is well within the grasp of many businesses, including some that may have been previously declined. Before you start It’s important to seek the right advice on suitable finance facilities for your business, as there’s a growing array of options available. Speak with experienced advisors such as your accountant or finance broker and a range of traditional banks and alternative lenders. These discussions should explore the proposed use for the money, a preferred repayment