Position Your Company for Success as Optimism Returns to Small Business Lending

Banks are feeling more optimistic about small business lending again. The Biz2Credit Small Business Lending Index recently reported that the small business loan approval rate among big banks – those with $10 billion or more in assets – rose to an all-time high in December 2013 to 17.6 percent, up from 17.4 percent in November. And compared with the year before, approval rates have jumped almost 20 percent.
This is great news for small business owners looking for an infusion of capital. Even those who have been rejected for loans from big banks in the past several years may now have a good chance of scoring a loan. Just be sure to do some essential preparation in order to lock in that financing. That prep work includes:
Gather Important Financial Documents
Each bank application may require slightly different information., but every bank is going to want copies of your business bank statements and tax returns for the last three years. You might also need to provide copies of your balance sheet, and a current statement of your accounts payable and accounts receivable.
Be Familiar With Your Credit Score
Your loan application is not determined solely on your business credit score, but it does play a big role. You can obtain a copy of your report from Dunn & Bradstreet for a fee. You can check for errors and prepare yourself to explain any worrisome issues to the bankers.
Present a Profitable Business Plan
Create a business plan that is so strong it will make your case for you. It should easily show banks how you plan to earn the money to pay back the loan and how your business is (or soon can be) on  a successful financial course.
With a little research and preparation, this year can be the year your company obtains all the funding it needs to thrive.