How to Approach Your Bank for a Business Loan

Posted on 23rd March 2025 by Streets Business Support


Image to represent How to Approach Your Bank for a Business Loan

Asking your bank for a business loan can feel daunting, but it doesn’t have to be. With the right preparation, you can give yourself the best possible chance of getting a positive outcome.

Start with a clear purpose
Banks want to know why you need the money. Are you looking to grow, cover short-term cash flow gaps, or invest in new equipment? Be specific. A well-defined reason gives your request more weight.

Get your figures in order
Before approaching the bank, make sure your accounts are up to date and accurate. Be ready to provide recent financial statements, cash flow forecasts, and details of any outstanding debts. Banks want to see that you understand your numbers and can manage repayments.

Create a solid business plan
A clear, realistic business plan is vital. It should outline what your business does, your market, how you make money, and your plans for growth. Include how the loan will help, and how you intend to pay it back. This builds trust and shows that you’ve thought things through.

Know your credit position
Check your business and personal credit scores in advance. If there are issues, be ready to explain them. Banks will always consider risk, so transparency is important.

Be realistic and professional
Ask for a sensible amount based on your business size and turnover. Approach the meeting professionally—treat it like pitching to an investor. Be confident but open to questions.

Consider alternatives
If your bank says no, ask for feedback. You could explore government-backed schemes like the British Business Bank or look into alternative lenders and credit unions.

Preparation, clarity, and confidence go a long way when asking your bank for support.


No Advice

The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.

Information

The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.


Expert insight and news straight
to your inbox

Related Articles


How Small Businesses Can Survive a Recession

Recessions can be tough on small businesses, but they do not have to spell disaster. With some smart thinking and a bit of planning, many firms can keep going and even emerge stronger once the economy picks up. Here are some practical ways to stay


Why Adequate Business Insurance is Essential for Small Businesses

For small business owners, especially those operating as sole traders or in partnerships without limited liability, having adequate business insurance is not just a safeguard—it’s a necessity. Without the legal protection of a limited company


Business Advice: An Investment, Not a Cost

Flexible planning is essential for adapting to uncertainty, responding to challenges, and seizing new opportunities. The world is unpredictable, and rigid plans can quickly become outdated. Whether in business or personal life, flexibility ensures

You might also be interested in...