Your business is doing great. In fact, its so good you're thinking of expanding into a related area. When you went to your banker to get expansion money, he said he'd think about it. That was several weeks ago, and he's still thinking about it. Now you're worried he may turn you down. What can you do to help your chances?

Most likely you haven't provided information answering one or more of your banker's concerns. Why don't you make it easy for him or her to say, Yes," by doing some homework which addresses these more-or-less standard concerns?

FIVE MAJOR POINTS
Here are five major points you need to cover in your request for money.

BASIC RESEARCH
Convince your banker there is a need for expansion. Present him or her with a written document providing historical background on your company and product, where you are now, and what the future holds. Include articles and references from popular and trade magazines showing an expanding market. Wherever possible include charts and graphs.

PAYBACK
Show your banker you have (or will have) the ability to pay back the loan in a reasonable period of time. Include your financial statements for the past three years and have your CPA make a projection for the next three years based on increased sales from the expansion.

COLLATERAL
Prove your ability to pay back the money in a worst-case scenario by presenting a collateral list. Include a complete and full inventory of both personal and company assets. Keep in mind, you banker is going to value your assets as what they would bring at a liquidation sale, not at their new or replacement costs.

MANAGEMENT
Demonstrate an ability to manage the new expanded business. If the expansion moves you into untried areas, or if you personally don't have the necessary management track record, you will need to show you understand this. Demonstrate your willingness to hire the management skills you need by including a letter of intent from your future manager along with his or her resume.

BUSINESS PLAN
If you don't have one, now is the time to put one together. A business plan tells your banker you have planned for success. A well written plan will cover all of the topics addressed above, and will do more to convince your banker of your success potential than anything else you can do.