Despite the continued nation-wide recession and fears gripping the financial and credit markets, life goes on. That means small business owners need access to money and capital to expand, run, or start businesses. Needing the loan and getting the loan are two separate matters, and we have some tips to help you bridge that gap. Lenders have begun to tighten their standards to making small business loans.

First off, make sure you have a solid, well-written, concise, and thorough business plan. This helps reassure bankers and lenders that you as a small business owner have thought through the current economic climate and how to survive in it to generate enough cash flow and revenue. It shows them you have contingency plans for the business with some things go wrong. A solid business plan will demonstrate these things.

Even though you are applying for a loan as a small business, you should put your personal finances into order first. Be sure to bring supporting documents of past tax returns, documents of personal assets and liabilities, and banking statements. If you are already in operations as a small business, be sure to bring your business tax returns for the last three years or for as long as your business has been operating, whichever is shorter. Although, some business owners may consider their personal financial history confidential, having an open and transparent with the disclosure to the banker will show that you have nothing to hide and that you are worthy of the risk of the loan and its repayment.

As such of putting your personal finances into order, you should know exactly what is in your credit history so that there will be no surprises. It gives you a chance to think out explanations for any negative items (if any) in your credit history. If you have a recent string of poor credit history entries, you may even want to remedy those before applying for a small business loan.

Prepare all these things. Complete and polish your business plan. Prepare and organize your personal and business financial documentation. Check your personal credit history and remedy any items you need to. Prepare and polish your presentation. And even with all these preparations, be prepared to meet with several lenders. In the current tightening market, you may need to make several applications before getting an approval. Even if the first one lender offers you a loan right away with your application, you’ll want to shop around to compare rates and terms.