Borrowing money from a bank to finance your business is a lot harder than getting a loan to buy a new car or to improve your home. Banks have a number of tough rules that you need to know before you approach them for a business loan, and these rules have become even more stringent in recent years.
So by understanding how banks make credit decisions, this can improve your chances of securing a business loan.
A banks main concern is protecting their capital and consequently bankers are generally very conservative. Their priorities are to recover the principal of the loan and earn a reasonable rate of interest on it.