1. Seriously consider using a small local bank for your borrowing needs.
a. There is more stability in their loan officers, which allows you to build a long-
term relationship with them.
b. The directors of the bank are usually local business owners with knowledge and
experience in your area.
c. The loan decision is made locally.
2. When lending is down it’s usually not because banks aren’t lending, but rather because Of a downturn in the economy has reduced the number of businesses that are trying to get loans.
3. Regulations on banks have increased dramatically. This has resulted in an increase in loan-related fees as well as accounting fees in order to comply with the new regulations.
4. Build a relationship with your banker early on, even before you open your business.
They can be a great knowledge base and a source of advice.
5. The loan officer puts a lot of weight on the business owner’s management ability
and experience in their industry.
6. Bring a loan officer into your loan acquisition process early on to help you find the
best loan product for your needs.
7. Both the bank and the SBA expect you to have “skin” in the game. They will never
lend you 100% of the amount you require to open your business or to buy or build
your building.
8. You better know your numbers! Failing to is a big red flag to your banker that you
may not have a good grasp on the basics of your business.
9. Don’t ignore the banker when things go bad! They can often help you.
10. Know what to bring to your loan officers for the initial meeting. This really impresses on the loan officer that you are organized and professional.
11. The business owner should have a good team that includes their banker, CPA,
business lawyer, and business insurance agent.
12. Failing to educate yourself and not knowing your numbers is a big red flag to your
banker that you may not have a good grasp on the basics of your business.