Banks favor an established businessperson with a solid credit rating, a sizeable bank account, experience in the business they propose to enter, and business plans that show the ability to repay the loans. If you are not one, then you need to double your preparations to convince the banker to lend you that much needed start-up capital. If your business is a start-up, bankers will need to know as much as possible about you and your business. Lenders will ask for an awful lot of questions, and it takes a great deal of work to put it all together.

However, many small business owners often make the mistake of not being adequately prepared when going to the bank to the loan. Surprisingly, many loan applicants don't even have the slightest idea how or when they intend to repay the money they requested. Often they don't even know how much money they need. When asked how much money they want to borrow, many people give these two common responses: "How much money can I get?" and "As much as possible." Is it any wonder that lenders say no?