/> Know Your Banker

Whether you have a start-up small or an established small business, the first step in obtaining financing through a small loan is to develop a relationship with your banker. Consider asking your bank's manager to open a file for your business, and provide quarterly or yearly profit and loss statements. When your is in need of financing, the bank will already have a file and will be at least somewhat familiar with your operations. When the time comes to apply for a small loan, approach the banker with a solid plan to inspire the lender's confidence in your business. Provide information on operations, marketing efforts, management ability, and financial projections for three years, as well as a cash flow projection and personal balance sheet demonstrating the worthiness of the business.

To prove worthiness for a small loan, prepare proper documentation. Keep your credit reports as clean as possible. A lender will assume that you operate your in the same manner that you manage your personal finances. The lower your credit rating, the slimmer your chances are of obtaining a small loan.

When applying for a small loan, search for a lender by first approaching the bank or banks in which you currently do business. Since you'll need to share all of your personal and financial information, it can be beneficial to apply with a financial institution that already has that information on file and is perhaps familiar with your profile and spending habits. If your credit rating is high, your changes are good of being approved for the small loan.

If you are unable to work with a bank or credit union in which you currently do business, or if you'd prefer not to work with your bank or credit union for your small loan, look for a lender who wants your business. Search the section of your local newspapers for special financing offers on small loans and other loans. These lenders are actively looking for people needing small loans, and the process of obtaining a small loan with these types of lenders may be easier and faster. Additionally, check into credit unions. Because credit unions tend to be smaller financial institutions, you may be able to speak directly with a loan decision maker. Larger banks and other types of large lenders may have more rigid rules for small loans, and the processes that they employ may be more complicated for small loans.

If, at First, You Don't Succeed

If your first attempt at obtaining a small loan fails, don't be discouraged. Small loans are often not approved with the first lender that you approach, and be assured that you're not alone. Especially if you have a start-up business, lenders don't always approve small loans, even in the most ideal situations. Search for other lenders, or become resourceful and look into other sources for loans rather than a small loan, including home equity loans and personal loans, both of which can be used for purposes.

Rebecca Game is the founder of Digital Women ®, an online community for women in business. A 30 year entrepreneur and dedicated to helping other women find small business loans. Visit her site: Loans for Women www.digital-women.com