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To obtain the approval of your loan application for small business, you must be able to meet the criteria laid down for a loan. Some organizations are more cautious than others, and will therefore have more stringent criteria.

To increase your chances of a successful application for funding, you must submit the following information:

1. The reason for the loan. The lender will be looking for something that falls within the normal range and expertise of your business. The amount may cover a number of items, so you will need to cover each.

2. The amount required, and length of loan repayment of a small business you want. (Eg $ 10,000 term 5 years, payable quarterly).

3. The details of how you will pay back the loan. For example, “From the increase in profits of reduced running costs of the Whizzbang Go4It”

4. Details of security you will be able to offer to the lender. This will act as reassurance for the lender. If you are not willing to implement some aspects of security, then why should they?

5. You must include your business plan which will serve to answer key questions relating to management capabilities, information about the market you operate in. What kind of business you are in etc.

6. 3-year financial statements. You will need to present quality financial information from your accounting software, preferably signed by your accountant or tax adviser.

7. Latest Set of account management. Again produced from your accounting software.

8. Accounts receivable (debtors) and payables (creditors) ageing reports.

9. Principals financial statements. — Particularly required if some form of security is necessary.

If you are a new company, the focus will be on your business plan, and security (also called collateral), you or your business can provide against the loan.

You must take the time to practice presenting your case to the bank or lender to iron out any glitches. Practice on your colleagues and family (you never know, they might be so impressed, they will invest or lend!). It may help to play the role of lender and find as much as possible specialized matters. The more time you take the better your chances are. (But remember, do not fall into the trap of analysis paralysis!)