1.“Our bank doesn’t make small business loans.”
Cure: Before applying for a loan, research banks to find out which ones seek the type of loan you need.
2.“I don’t know enough about you or your business.”
Cure: Develop a detailed business plan to present to the banker.
- “You haven’t told me why you need the money.”
Cure: Your business plan should explain how much money you need and how you plan to use it.
- “Your numbers don’t support your loan request.”
Cure: Include a cash flow forecast in your business plan.
- “You don’t have enough collateral.”
Cure: Be prepared to pledge your company’s assets – and perhaps your personal assets – as collateral for the loan.
- “Your business does not support the loan on its own.”
Cure: Be prepared to provide a personal guarantee on the loan.