Preparing for a business loan begins well before you make your first application. It begins by keeping good, accurate financial records. Invest the time and money in hiring an accountant or CPA to assist you with this. Good financial records show not only an accurate picture of your business but also that you are in control of your business, not the other way around.
Check your personal credit report. Clear up any errors. Your credit history is important since you will probably be required to personally guarantee your loan. You don’t need perfect credit to get a business loan, but a history of slow payments, collections, or judgments will certainly raise red flags and make getting a business loan more difficult or impossible.
Establish a relationship with your loan officer before you need a loan. Establish a rapport. Ask questions. Take the opportunity to educate your loan officer about your business.