Be sure you have considered all of your alternative sources of capital before you go to a financial institution. While running up your credit card balances can be expensive and asking relatives for funds can be difficult, those alternatives may be preferable especially if the loan is for a small amount or for a short period of time.
Are you approaching lenders that are accustomed to making loans to businesses of your size, in your industry or in a specific geographic area? If the institution already knows you, your business, your industry and potentially your customers, they may already have a great deal of the information they need to make an informed lending decision.
If you expect to use the funds to purchase a piece of equipment, you may want to discuss equipment leasing options with the equipment seller. Many manufacturers of machines (from office equipment to large industrial equipment) have leasing arrangements with lenders that may be familiar with your type of business.
You also need to consider whether your primary financial institution is the right lender to approach.
