Securing a small business loan

Crafting a business plan prior to applying for a loan is likely to go a long way when it comes to being approved, according to the Globe & Mail.

"You want to impress your potential loan institution," advised Bruce Hurst, a partner of Reid Hurst Nagy, a Canadian general accounting firm based in Richmond, British Columbia. He told the news source that entrepreneurs should make sure their business plans thoroughly address finance, marketing and product development.

Cathy Pin, vice president of commercial banking at BMO Bank of Montreal, offered a banker's perspective.

"Bankers are looking for an understanding of what kind of equity is invested in the business," she told the news source. "Building equity is about having enough capital to absorb a loss for any kind of change. It also demonstrates your commitment."

Once a loan has been secured, the financial institution will be regularly checking up on the small business' progress. Because of this, it's important to keep up-to-date, comprehensive financial records, according to the Christian Science Monitor.