At some point in the life cycle of your small business, you may need a loan—either to start your company or help it grow. All banks can give you a buck. The real question is: what else can they give you?

Be Prepared
To get off on solid footing, it’s important to understand the criteria bankers consider when determining who qualifies for a loan and how to best structure a financing package. First, they’ll want to see your business plan, including:

• Your past experience, particularly what will make you successful.
• A description of your business and how it’s organized.
• For new ventures, research on the need for this type of business in the community.
• Target audience information.
• Financial data, including expected expenses for salaries and benefits, overhead, operating expenses, and sales or income projections.

Bankers also will want to see your passion and commitment to making the business succeed.

Consider Your Options
What will drive your long-term satisfaction and improve the odds of a long-term working relationship? When you’re shopping for a banker, consider:

• How do you feel about the people who’ll manage and service your accounts?
• Does the bank have experience working with your type of business?
• What financial services do you need—and does this bank offer all of them?

Banks may offer specialty areas, such as retail or medical banking. Small business is considered a specialty area; it pays to work with a bank that offers products and services specifically designed to meet your needs.

Seek Out Specialized Services
Running a small business can be costly and time-consuming. Many banks offer small business checking products to help make the process of managing business finances easier and more convenient for small business customers. Often, a bank creates a package of financial services designed with the small business owner in mind. Some packages include a comprehensive list of financial services comprised of checking accounts, loans, lines of credit, credit card processing, investment services, and more. Many products are offered free to small business customers, such as online account access, bill payment, business check card, electronic transactions with no limit, and no monthly fee on checking accounts.

Do Your Homework
Many banks handle SBA loans, and bankers who specialize in small business financing can help you determine if an SBA loan is a good option for you. You can save time by working with a bank designated as a preferred SBA lender. With proper planning and collateral, other loan options also are available. An experienced small business lender will work with you to structure the best financing package to meet your particular needs.

Grow With a Plan
Stories abound about small companies that start out with two bright people and quickly grow into 50-person ventures. It looks great on paper or in the paper. The problem is, the people who started the company keep moving farther away from the work they know and love. Instead, they’re suddenly handling human resource issues. The infrastructure to support growth must be in place, or things will fall apart—and the right banker will help you realize that. The right banker will ask you tough questions about your plans for growth, cash flow, and projections. And they can offer referrals to other professionals, including CPAs and attorneys who understand and can help you manage your business. TPW