Friday, 18 August 2017

Information and commentary for the small business banking industry

Show your small business customers how to prepare a business loan application

16 Mar

As a bank, you’ll understand better than anyone that bank financing is essential for most small businesses, whether they’re just starting out or looking to expand and grow their business. There are few businesses that can launch or grow without bank financing, so to give them the best chance of succeeding in their application, there are easy ways to guide them through the process.

Of course, all banks have different criteria that’s relevant to the individual bank, but there are things almost all banks have in common when they’re considering a business loan application. It can only boost your relationship with your business customers if you’re able to give them a guide or checklist so they can maximize their chances of their application being approved.

The main point is to explain that banks like to know as much as possible about a business and who runs it before agreeing to lend them money. So it’s important to explain the concept of a good and bad risk, and an outline of how you as a lender determine those risks.

What it all boils down to is good preparation. And the more you can help them with that, the better your relationship with your business customers will be. You’re also getting a good idea of how organized and diligent your customers are, so it’s a win-win situation for both of you.

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