Applying for a loan? Here's how to convince your banker with a strong dossier
June 2025 - Your business is growing, your ambitions are clear, but you need extra resources to take the next step. Whether it concerns investments, extra working capital or starting up a new project, without additional financing you often don't get anywhere. Banks and other lenders are willing to help you, provided you come up with a solid case.
How do you go about this? What does a bank really want to know, and how do you present your business convincingly?
Tell the story of your business
A credit application does not start with the numbers, but with who you are. Financial institutions want to understand who they are facing. What exactly does your company do, who are your customers, what does your offering look like, and what sets you apart from the rest? Show that you know your market inside out: who are your competitors, what are the risks in your sector, and how is your company prepared for them?
Also be transparent about the structure of your company. Provide insight into share ownership, introduce the management team and explain what experience they bring. This personal touch is essential: it gives the lender confidence in the people behind the project.
Next, of course, are the figures. Banks not only want to see official financial statements, but also recent and detailed data from your internal accounts. If your bookkeeper or accountant has not yet provided you with an interim balance sheet, be sure to ask for it. And be honest: if your results are not perfect, don't hide that. Point out what could be improved and what actions you are taking to adjust. That way, you show that you are managing your business well, even in less obvious circumstances.
Why do you need the money? Formulate your question clearly
A bank wants to know exactly what you are applying for funding for. So keep it concrete. Do you need extra working capital? Then explain why. Perhaps your turnover is increasing faster than expected, you need to build up larger stocks or you are facing longer payment terms from customers. Or maybe you want to pay your suppliers faster to enjoy favourable terms.
Is it an investment in infrastructure, machinery or digital tools? If so, give as much detail as possible. What added value will this investment bring? How much will it cost? If possible, include quotations or order forms, and establish a clear timeline of payment terms.
Don't forget your own contribution either. In most cases, a bank expects you to finance 20 per cent of the investment yourself. If you do not have that amount immediately available, you may need to explore other avenues, such as subordinated loans or additional sources of funding.
Answer the questions every bank asks
A good file is one that answers the right questions beforehand. Above all, banks want to know whether you are a reliable borrower. Is your company stable enough to carry the loan? Does the amount requested match your financial capacity? Are there sufficient securities or guarantees?
In doing so, they look not only at your current figures, but also at potential. Is there a future in your story? Can the company repay the loan in the medium term without getting into trouble? And is the relationship with your company of long-term interest to the bank? If your dossier answers all these questions - explicitly or implicitly - you are one step closer to a ‘yes’.
Show how you will repay the loan
The past is important, but it is your prospects that can be the deciding factor. Therefore, work out a budget and cash planning for the next few years. These financial projections give lenders insight into how you expect your business to develop and when you will have sufficient funds to meet your repayment obligations.
A clear and realistic financial plan is more than just arithmetic: it is proof that you have the future of your business under control. So be sure to include scenarios for less favourable circumstances. What if growth is slower than expected? What if a major customer drops out?
Be clear - and start on time
Submitting a credit application is not a matter of quickly filling in a form. The more complete and substantiated your file is, the faster and smoother the decision process will be. And the greater your chances of success. So make sure your file is clearly structured, that all the details are correct and that you understand every part of the credit proposal. Ask for explanations if certain conditions or clauses are not clear. The last thing you want is to face surprises afterwards.
Moreover, start on time. Especially with complex applications, several weeks can pass between the initial application and approval. So don't wait until the money is really needed to knock on your banker's door. If you involve him or her at an early stage, he or she can also think along about the best formula or additional guarantees you can offer.
