How to Get a Bank Loan

Asking for money step by step.

Photo by Jan Antonin Kolar on Unsplash

It may not be a comfortable conversation.

Asking for money can sometimes feel like you’re a failure. Somehow you weren’t able to make it on your own and now you need help.

The independent spirit in many people wants to run away from this type of meeting. But sometimes you have no choice.

Confidence is important.

Lenders are more likely to give you a loan if you are self-assured. They like success even if you’re not feeling it. A shift in your attitude will help them say yes to your request.

Understand that a lender is in the business of making money. They only want to give loans to people that will pay them back on time.

Whether it’s your first loan or you are asking to consolidate debt, have a plan.

“Give information, be transparent, be honest, give bad news upfront.”-author

Be prepared.

• You can never be too prepared.

• Anticipate the questions they will ask and have the information at hand, at your fingertips

• If you keep saying I’ll get back to you on that, I’ll get back to you on that, the meeting isn’t going as well as it could.

Don’t be sorry

• A common mistake is when someone apologizes for asking for the money.

• If you’re sorry, don’t ask.

• If you have a good track record, you’ll be able to borrow when you need it.

Know what you’re talking about

• Lenders are savvy. They have a lot of experience reading people and they can smell a story miles away. Be honest.

It’s a business meeting

• Dress the part. Unless you’ve come right from work on the construction site and you haven’t had a chance to change, wear clean clothes.

• You’re trying to make a good impression here.

• Be polite and appropriately modest, but remember that a confident person is more likely to get a loan.

Even if you don’t think you will get the money, follow up.

• Most lenders can tell you on the spot if you are eligible for a loan, but sometimes they need time to get approval.

• After the meeting is over, send them a follow-up note, thanking them for their time.

Don’t ignore your lender.

• If they say no the first time, ask them what would change their mind.

• A co-signer might make the difference. You won’t know unless you ask.

If a lender has the sense that you are reliable and trustworthy, they may be able to make an exception.

“Character is like a tree and reputation like a shadow. The shadow is what we think of it; the tree is the real thing.” Abraham Lincoln

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This is one article in a series that explores how to be comfortable asking for money in different situations.

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