Be honest with your lender about why you’re seeking a loan. A clear and upfront loan proposal can still be crafted in a way that’s appealing to the lender. No one wants to give money to someone who they perceive as trying to stretch the truth.
A lender expects transparency with regards to your financial statements and other private business information. Be prepared to show them everything they would need to know in making a decision so that you are not caught off guard in the likely event that you are asked to open your books and records.
- Open Mindedness
Be open-minded when working with a lender to determine the specifics of a loan. Negotiations don’t work well when one side tries to dominate the conversation. Approach the lender with the terms and conditions that you prefer but don’t be entirely opposed to accepting a compromise.
Perhaps the most obvious deterrent to a potential lender is an entrepreneur who’s clearly uncomfortable or unsure of himself. Demonstrate confidence in your business idea and your loan proposal, and a lender will feel much easier about offering you money.
Demonstrate keen awareness when working with a lender to avoid getting the sour end of a deal. In the event that you’re unsure of what comprises a fair deal, you might be best off consulting a broker who serves as an intermediary between the borrower and the lender.