Finding funding to start a business or to provide cash flow can be daunting. One avenue is to approach your bank for a loan. Following these steps will help you succeed the first time:

1. PLAN YOUR MEETING

You know you need finance. Okay. How much? How long for? What can you repay? What did you turnover last year? Do you know the answers already?

If you do, great, you may be able to skip this step. If not, you need to see an Accountant and create budgets, cash flow forecasts & update your profit & loss and balance sheet reports. The bank will want to see these, no maybes. Doing this step helps you clarify your goals and activities for the coming year/s and set targets for your business growth; it also shows the bank you know what you are doing. These reports form the financial section of a business plan; there are other sections that form a complete document and they are all essential to a well planned business. If you have a whole plan, review and update it now, if not, consider writing one as the process assists in giving a business owner direction and control over their business growth. Templates can be found on the internet if you want to have a go at it yourself, otherwise enlist a professional's help.

If you are a startup business looking for funding you often need to have a whole plan.

2. HAVE YOUR DOCUMENTATION READY

So you have your financial statements/business plan ready. How about security? What are you risking in the deal? Banks favour property, real estate first, unencumbered large assets next, but don't expect them to necessarily lend you what you think the value is, they have an independant valuation system that is followed. It is usually easiest to approach your current lender if you already have a property mortgage. If you aren't happy with your current lender, approach the opposition for help as they will usually be keen to grab the new business off their rival.

Documentation you will need includes 100 points of ID if you're not an account holder (passport, DL, birth cert, medicare, bank cards); details of the property title & current mortgage; bank statements for the mortgage; business financials; tax returns for 1-2 prior years for business & owner; prior BAS statements (from end of financial year to time of application). Please note this list will vary between lending institutions.

The bank officer should help you complete a loan application and then all parties to the loan will need to sign it.

3. FIRST IMPRESSIONS LAST

Make a great first impression! You are branding your business with this meeting.

• Dress in your best shirt & pants/skirt with good shoes and take care of your grooming. If you have a uniform shirt wear it.
• Look the Loans Officer in the eye and shake their hand confidently as you introduce yourself. Always say from "..your company name" as you are immediately branding your business. You are the face of the company, be proud and confident.
• If you are nervous you need to control this before the meeting. Practice the interview with a friend, spouse, business colleague, business coach etc., practice what you will say and have a short summary of your business ready so you can help the bank officer understand your needs.
• Have your business plan with you and make sure its up to date. If you have a portfolio take this as well. Be ready to answer questions about your business and to show you've planned well.

Make sure you smile and act confidently, you are requesting funds for an excellent purpose and you've come prepared.

4. FOLLOW UP

Bank employees are busy people just like you and me. Follow up with them so you know they are moving your application along. Make sure you provide extra information promptly and disclose all relevant matters upfront as this will speed up the process. Remember your bank manager/lending officer are ordinary people doing their jobs and for them, having a pleasant & well organised client is a positive experience that will be remembered.

Remember banks are in the business of lending money, they want to give it to you, providing you can prove you're a good risk!

Kathi Fowler MNIA B.Bus