Mar 22, 2013

Five Answers Bankers Need Before They’ll Lend to Your Business

I don’t think there’s a small business owner on the planet who doesn’t already know that credit is tight and finding the cash to fund working capital or fuel expansion isn’t tough. I’m convinced it’s one of the biggest single challenges faced by small business owners right now. Although most small business owners make their first stop at the local bank, only 10 percent of them leave with a check.

When you sit down with your banker, his or her job is to access whether or not your a good risk. Most bankers start with the Five C’s of small business loan qualification. Knowing what the banker wants to know before he asks will help you better prepare for your visit to the bank. Think of it like watching the game footage of your opponents last game. Cervantes said, “Forewarned, forearmed; to be prepared is half the victory.”

You should also know that no two banks are exactly the same. Some banks might be better suited to your situation than others. You should be looking for a bank and banker that best meets your needs. Hopefully, being prepared will help you improve the odds of getting a loan.

About the author

Ty Kiisel
Small business evangelist and veteran of over 30 years in the trenches of Main Street business, Ty makes small business financing and trends accessible in common sense language devoid of the jargon.


  1. The five very important C’s! I think this certainly covers what the bank will be looking for from you. As long as you can demonstrate your business has the ability to generate revenue, can see business acumen in yourself, and your ability to pay back the loan is obvious then you have every chance of being successful. The banks can be difficult to secure finance from, but there are other options so be sure to have a plan B!


  2. I’ve read something similar before. Where did you learn the C’s to lending?

    • I can’t remember where I heard about the five ‘Cs’, but I’m not surprised you’ve heard of them before. I think it’s a pretty common way to describe what bankers are looking for.

  3. Hey i am looking for funding to purchasing an apt building. I have at this time only single family homes. I am in the market to put an offer on a 75-80 unit apt i found in the pass week. i have not looking around as yet for funding. Since you sent me this email i think i will try you first. Well only like to be contacted via email. Thanks

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