Enable Accessibility
×
Close
Personal Online Banking
All personal banking clients, please enter your online credentials here:
e‑Treasury Business Banking
Log in
Safeguarding your online banking sessions is our top priority. For information about how you can help protect your online banking sessions, or if you need additional assistance with your e-Treasury log-in, please contact Client Support at [email protected] or 855.274.2800.

Download our e-Treasury Secure Browser

Business Online Banking
If you need assistance, please contact Client Services at [email protected] or 855.274.2800.
e‑Treasury
Log in
Safeguarding your online banking sessions is our top priority. For information about how you can help protect your online banking sessions, or if you need additional assistance with your e-Treasury log-in, please contact TM Service at [email protected] or 212.575.8020.


Download our e-Treasury Secure Browser

Download the Sterling e-Treasury Token Client


Business Online Banking
If you need assistance, please contact Client Services at [email protected] or 855.274.2800

For optimal viewing experience, please use a supported browser such as Chrome or Edge

Download Edge Download Chrome

Six tips to make your small business more attractive to SBA lenders

Published on April 20, 2020 | Webster Bank

People seek SBA-guaranteed loans to start or buy a business, buyout a partner, get working capital, extend a loan or get a lower down payment on an asset purchase. Whatever your reason, here are six tips to help make your small business more attractive to SBA lenders.

1. Educate your banker

Most bankers are generalists and know a little about many industries. Be sure to educate them so they are able to articulate the history of the business, the ownership, the industry, the loan request, business operations, etc. Make the banker your advocate in this process so they can make the bank confident in loaning you the money.

2. Show your cash flow

Banks analyze your businessÕs ability to repay the debt that has been requested. If the business cannot repay the debt based on past financial statements, are there projections with underlying assumptions that show your ability to repay in the near future? Are they reasonable and factual? Banks need to know that you can pay them back, so show them your plan.

3. Provide financial documentation

If you provide requested financial documents quickly, you will gain the trust of your banker. If they have to ask again and again, it’s thought that you don’t keep good financial records, which is a lender turn-off. It is also important that the business owner can be completely articulate in what the financial statements report. Having immediate and precise answers to the banker’s questions will impress and provide a high level of confidence.

4. Communicate your business model

Another way to impress your banker is to be able to communicate your business model. Be ready to answer questions like, how do you operate, how do you collect cash and pay customers?  What’s the typical timing of the operating cycle? How do you sell, and who do you sell to? Is there something atypical or proprietary in your operations? What are your short and long-term prospects?

5. Know how you will use the funds

Believe it or not, some businesses apply for credit and have no idea as to how they’re going to use the money. Do you need a line of credit for short term or is there a need for a longer term? How will it be used, payroll, inventory, lease payments? If the need is long term, what has to be paid immediately? Your banker may make suggestions, but if you can identify the use of funds initially, it will alleviate the concern while the request is reviewed.

6. Pull your personal credit

A bad personal credit score can sink any loan request. It is best to pull the personal credit score of all owners of the business and have it available for the banker’s initial review. Everyone should pull their own credit report annually to review for any inaccuracies or even fraud. If a business owner’s credit score needs help, it’s best to work through the issues before submitting a loan request to a bank. As in any job interview, a candidate has one good chance to make a positive impression. It is a similar case when applying for business credit. Attention to detail and consideration of the recommendations above can significantly improve the chances for a successful loan approval and the start of a long and mutually beneficial relationship with your banker.

Related Resources

Small Business BankingArticles
Identity theft and reputational fraud
Fraud doesn’t always mean a direct financial loss. It could be identity theft or reputational damage from online activity you can’t control which damages your credibility. Identity theft Identity theft happens when someone uses information about you or your business without your permission. They could use your name and address, credit card or bank account […]
Small Business BankingTemplates
Find New Customers Checklist
Use this resource to benchmark your on-going marketing activities against a best practice checklist. Download Find New Customers Checklist
Small Business BankingArticles
Overcoming issues facing women business owners
While women are taking the business and entrepreneurial world by storm, they are still faced with inequalities and obstacles that their male counterparts are not. Here are four challenges women business owners are facing today — and ways to overcome them.
Connect With Us
Learn more about Webster products, services and the communities we serve.
We’d love your feedback
×