April 15, 2008, 11:52 pm

What makes a successful loan application?

Frederick, owner of On Point PDS, asked FSB what banks are looking for when evaluating loan applications. Have you been successful in establishing bank credit? Tell us how you did it.

Your Answers
AFrom Heath Nichols, Boca Raton, FL

Establishing bank credit is a tricky thing to do – unless you know the banks who offer such programs and how they look at an application. When it all comes down to it, banks work in two areas – credit or collateral. There isn't any grey area in between. The most common mistake that business owners make is that they ask for too much than what the lender can extend on credit to a business, which inevitably results in either a turndown or an offer of a secured loan or line of credit to personal assets. Depending on your situation, this may or may not work for you. The main problem when tying up personal assets is that it appears under your personal credit, which drops your score when you draw down the funds – and also affects your debt to income when applying for personal loans, as well. There are reputable companies who can assist you in obtaining the credit you need for your business that can be found on the web. Just make sure you check with the Better Business Bureau first before doing business with them – and only work with companies who are confident enough to be paid on a contingency basis!

Posted By Heath Nichols, Boca Raton, FL : April 24, 2008 3:32 pm
AFrom Marshall Lebovits Redondo Beach, CA

What Will a Banker Ask Me? (http://marshall-showmethemoney.blogspot.com/2006/12/what-will-banker-ask-me.html) offers some great tips on how to prepare your request for a loan.

Posted By Marshall Lebovits Redondo Beach, CA : April 21, 2008 9:55 pm
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QWe've run a dinner theater for three decades. We've been operating at a loss for the last couple of years, and are unable to get a loan. We even closed for two months this summer to save money. We don't know what to do. More
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- Kyle, Sarasota, Fla.
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