Business plans, financial projections, income tax returns and reams of supporting documentation are often the norm. Well, regardless of any individual bank's willingness to lend, their primary goal is increasing shareholder value. Combine that mentality with the discomforting fact that most new small businesses don't survive beyond their third year. This is why commercial borrowing can appear so frustrating. However, it's not all bad news.
Banks are in the business of lending money, and good banks want to make good loans.
The key is to structure loans that are good for both you and the bank. The first thing to consider when evaluating your borrowing potential is how much money you really need. This involves determining where your capital is to be used and how it will work for your company. Stay away from guessing. Whenever possible, try to use real numbers.