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Finding a bank loan is often a full-time, often frustrating experience.  Banks often say “no” precisely when you need financing. 

Below are some steps all borrowers should take to find the right bank:

• Examine the performance of the banks. Examine the banks' composition of business. Your chances of receiving a business loan are greater if you go to a profitable commercial bank with a quality portfolio. In Connecticut, Analytic Systems publishes a study of the state's banks.
• Talk to all the bankers who knock on your door. This will provide you with an opportunity to increase your company's exposure and provide you with some market intelligence and information on new products and services.
• Talk to non-bank lenders. Many of the credit companies are still lending. These include leasing companies, factors, asset based lenders, real estate lenders, and SBICs.
• Talk to foreign banks. Although most have minimum loan requirements that are high, they are gaining a larger market share year after year. Today foreign banks hold almost 30% of the commercial and industrial loans in the United States.
• Be prepared. Provide a clear comprehensive picture of your company. A detailed business plan should be well written and easy to understand.

Once a bank has been selected, companies should consider the following practices to maximize their financial flexibility and independence: 

1. Get to know at least three officers at the bank. Bank turnover has increased at most banks; the experienced lenders are now in the work-out department.
2. Meet regularly, at least twice a year. By keeping the bank informed, both parties avoid surprises.
3. Ask how the bank analyzes your company and your industry. Track the results. Make suggestions to the bank on other indices by which to judge your company.
4. Ask which companies in the bank portfolio your company competes with. This information will provide you with the bank's perspective. For example, a bank turned down a loan request for an industry leader. The reason was that the bank was the lead lender to the #2 company in the industry, which just went on the bank's non-performing list.
5. Talk with other borrowers from the bank. Bankers may not be fully candid regarding bank policies and service.
6. Use more than one lender. Although it is simpler to deal with one lender, you do not want all your financing needs to be totally dependent on one source. Most companies have only one bank, but would not dream of depending on only one supplier of materials.