There is no question that over the last two years the world has teetered on the brink of economic collapse. Who would have predicted that big international banks would fail and that one day there would be the very real prospect of no money coming out of our high street cash machines. There are some who believe that this is actually a long needed flushing out of the weak businesses and that the ones that are left will be in good shape for future growth. Whether you believe that or not, every business needs cash flows to survive in some form or another. It could be to fund further expansion or to help keep the cash flow stable.

So in today`s tight markets is it the small business that is suffering more than anyone else? There are also many new reluctant entrepreneurs who having been the victims of redundancy are launching start-ups that they all dreamt about but never had the momentum to get on and do it. But all these scenarios need seed money and with banks getting really selective about who they lend money too, what is the framework you need for successful small business loans applications?

The bottom line is that small business lenders really only want two things:

1.   To be sure that the business can repay the loan
2.   You have sufficient personal collateral to repay it if the business fails to do so.

You on the other hand have a lot more things to worry about:

1.  Who do you pick as a small business lender? As hard as this might seem, you need to cherry pick your lender carefully. You want commercial lending companies who really understand your business sector and can provide continuing commercial help and guidance.
2.  You need a rock solid business plan. It must be factually realistic and not based on finger in the air projections. However hard this may seem to be, it will come back to haunt you if you have not been as realistic as possible with your turnover and profitability. It must be as thorough as possible with minimal margin for error.
3.  You need to clearly show your knowledge and expertise in your chosen sector. Be as aggressive as you like here, after all this is your comfort zone and you can really score points if you can clearly demonstrate that you know your stuff.
4.  Research you competition and understand what you are up against, because one thing is for sure, the small business lender, if you have chosen correctly will have done their homework too.
5.  Lastly, make sure that you ask for enough to give your business a chance.

The commercial world offers all of us countless opportunities to be successful; all we need is the right idea and a sound business plan. Even working from home can prove to be a success and free cash is just one example of how a good idea can pay dividends.