Obtaining a Business Loan – How to Improve Your Chances with the Bank
Whether for investments, growth, or liquidity: a business loan is a key financing instrument for many entrepreneurs. However, not every loan application is approved – especially for small and medium-sized enterprises. In this article, you will learn how to increase your chances of securing a successful loan.
Requirements for a Business Loan
Banks grant loans to businesses based on clear criteria. Key factors include:
-
Creditworthiness of the company (financial statements, management reports)
-
Payment behavior (e.g., credit bureau report, account activity)
-
Purpose of the loan
-
Collateral (e.g., machinery, real estate, guarantees)
-
Personal reliability of the managing director
Tip: Use our Business Loan Financing Calculator to get an initial estimate of your potential capital needs and repayment structure.
Common Reasons for Loan Rejection – and How to Avoid Them
1. Unclear Financial Planning
Solution: Prepare a transparent and comprehensible financing plan.
2. Lack of Collateral
Solution: Guarantee banks or private collateral can provide assistance.
3. Poor Equity Ratio
Solution: Consider combining the loan with equity capital if necessary.
Documents You Need for the Loan Application
-
Current management reports & annual financial statements
-
Liquidity and profitability forecasts
-
Investment plan (for project-related loans)
-
Business plan (for larger loans)
-
Overview of existing liabilities
Tip: Prepare specifically for your bank meeting using our Business Financing Calculator — based on realistic figures.
Conclusion
A loan for your business is attainable—if you do your homework. The better prepared you are, the higher your chances. Organize your documents, demonstrate your business competence, and gain clarity in advance with our Business Loan Calculator.