When in the business world, it is inevitable that you will have to go to a lender sooner or later. When the time comes, it is imperative that lender or creditor sees you as positively as a potential borrower and has implicit trust in you. Here are 7 simple and basic ways to ensure that the lender sees you in a positive light.

  1. Have a good business plan

Very essential and not to be taken lightly, a good business plan can be the testament the lender needs to view you as a good horse to bet on so to speak. By providing clear details on the financial structure of the company, the way the business loan will be used and the potential return on investment, you can show the lender that the loan is being requested for a very viable venture and that the repayment procedure will be without a hitch.

  1. Have adequate collateral

It is important to ensure the lender that even if the venture for which the business loan is being requested for fails, or hits a slump during the repayment process, the lender will still be compensated as agreed. An easy way of doing so which shows the borrower’s honest intentions, is to put up adequate and relevant collateral. Most business loans procedures already have this in place and request for some property or asset of a particular value as collateral for the loan. This could also be applied if the loan is being requested through a business cash advance vendor and not a bank. Since collateral is mostly for secured loans, you should first research if this is adequate for your small business or not.

  1. Have a good credit history

A background check on you should reveal that you have always paid your dues on time whether they are personal or business related; any mortgage payments, bills (especially business bills) and payments to suppliers should always have been paid on time. More importantly it should show that you are on top of any outstanding debts. This provides evidence to the lender that you are a serious borrower and will not default on the loan. If any red flags such as bankruptcy turn up, it could be hard for you to get a loan. Even with bad credit history, it is still possible to get a small business loan if your business plan can prove the viability of the venture – however, this would then usually be at a higher interest rate with more stringent conditions.

  1. Show command over your business

If the business loan is for an existing venture, you can draw up thorough financial statements that show a smoothly functioning business with enough gains on investment that will allow the loan to be easily repaid. If it is for a new venture, show the financial prowess of other companies you owned or other ventures you had in the same industry to boost the lender’s confidence in your abilities to invest the requested capital wisely.

  1. Be amenable to the conditions imposed by the lender

At the end of the day, you are the one requesting the lender for capital and thus cannot be too picky on the conditions imposed. Although you should definitely avoid a bad deal with exorbitant interest rates and unrealistic repayment timelines, you should generally be flexible and accommodating to the conditions imposed by the lender.

  1. Be realistic

Make sure that the plans that you mention for the capital requested are realistic and are not showing an exaggerated return on investment model. Be realistic with your timelines and your earnings forecast so that the lender knows you have done your research; this allows for negotiation room when laying down the conditions.

  1. Be meticulously organised

You should make sure that everything and anything related to your personal finances, your business’s finances and your business plans is with you when you meet the lender. Have it all sorted and categorised neatly for easy access. Any document imaginable that the lender might ask a copy of should be with you. This readiness and organised behaviour reflects upon your personal characteristics and your seriousness as a borrower.

The above points are based on general perception, good business practices and common sense. Being prepared in every way for a loan request meeting leaves a good impression on the agent processing the request and can be the deciding factor between approval or rejection.