Common rules of thumb used by bankers New ventures must have at least one year's operating capital. A large percentage of sales to any one customer causes a banker concern. Banks would rather you sell to many small accounts than a few large ones. Loan must be on activities that generate funds. Poor checking account balance tells how a firm is performing.
Small balance indicates problems.
Preparation and presentation of a loan request Banks are in the business of making loans and they have a need to make loans to firms. One key to a successful loan request is to get acquainted with a banker before a loan is requested. How will the objective be accomplished using the proceeds of the loan. Banks will tell you what must be included, usually the past financial history of both the company and the principal owners and managers. A well-prepared written document is needed.