How to Approach a Bank for a Business Loan
If you are starting up a new business or need to borrow funds to sustain a current business, you will need to approach a bank to take out a business loan. Be prepared to show a business plan as well as provide equity either through the business or through personal property depending on if the business has been established yet.
- Gather all financial records of the business that you wish to take out the loan to fund if it has already been established. If not, you should gather all personal financial records to bring with you to the bank. You may need to bring proof of personal equity that can be used to secure the loan.
- Make up a business plan that pertains to all of the details of the business such as monthly expenses, overhead costs and start-up costs if you are opening a new business venture. Include market research that shows the possible profits of the business you want to open. The better prepared you are and the more detailed the business plan is, the better the chances are of you receiving the funding you are requesting.
- Call the bank and make an appointment to speak to a loan advisor at a bank near you. Making an appointment ahead of time appears professional and will also ensure that the loan officer will have adequate time set aside to review the details of the loan you are requesting.
- Arrive to the appointment that you have made a few minutes early. Not only will this look good, it will also allow the loan officer to see you early if they have an opening in their schedule.
- Dress professional and speak directly using eye contact to address any questions that may be asked of you. Be prepared to "sell" the business plan that you have made in order to obtain a business loan through a bank.