Now that we are slowly coming out of this fabulous economy there are going to be new rules for small business success.  These new rules are going to take into consideration quite a few different aspects of your business and how it is run on a day to day basis.  One of the larger areas where your business is going to be looked at under a microscope is business lending. 

Business loans are coming back and they are coming back with the vengeance.  Banks and lending institutions are on the prowl for good quality businesses that they can lend to.  The time of frozen credit markets has come to an end and now it is time to get the cash rolling back into the small business community.  If you are however, going to be applying for a business loan, you had better know what the banks are going to be looking for in a good quality small business borrower.  Here are a few things to prepare.

Strong Corporate Foundation - Any lender is going to want to know that your business is built on a strong foundation.  If they are going to lend you money, they want to be sure that the foundation can support the debt.  A strong corporate foundation consist of good business credit scores with all three business credit reporting agencies, proper articles of incorporation in your state, a valid business address and business phone number, some small existing debt like credit cards, and 16 other items.

Business Plan - before the economy hit the floor, business owners and entrepreneurs looked at business plans like your high school GPA.  You have to have a good GPA but no one looks at it once you graduate from college.  Today, a bank or lending institution won't even look at your loan package unless you have a business plan.  It is 100% required if you are looking to apply for an SBA (Small Business Administration) loan.  If you can afford it, make sure you have your business plan professionally written.  Business plan writers will ask you questions about your business you will not know to ask yourself.

Confidence - You must have strong confidence in your business when you speak with business loan officers.  Sell your business to the lender.  Banks have no interest in lending money to business owners that are not 100% entrenched in their business at a top level.  Be confident in your business and how you speak about your vision and goals.  Talk about things in your industry that the loan officer won't understand.  it will tell the loan officer you know what you are doing and you have everything under control. 

There are quite a few more things you need to prepare before you apply for a business loan.  Just make sure you know what the criteria is from the bank before you go and apply.  Be smart about business lending.  Don't rush into it and get a bad debt situation.

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