Finding financing to start a business is the first hurdle most entrepreneurs face. One entrepreneur contacted 124 investors before finding a bank willing to finance his now-multimillion dollar business. The process of raising money for a new business can be time-consuming and intimidating, but you can greatly increase your chances of securing needed capital by following these tips:

• Don't wait until the last minute to arrange financing. Any lender or investor will want time to evaluate your request. And you can expect that it will also take time to process the paperwork.
• Clean up your credit report before applying for financing. Although credit bureaus try to be accurate, reports can contain outdated, inexact, faulty and incorrect information.
• Know how much money you need. Be prepared to explain what you will spend the money on. If you will be buying equipment or materials, have supplier's price lists to show the costs involved.
• Shop around for a lender. Look for a bank with a good history working with small commercial loans, maybe an SBA-preferred lender. Remember, not all banks are alike; some can handle large loans, some have lower limits set by banking regulations.
• Bring a complete application the first time. Know what kind of information lenders require and have it put together ahead of your appointment. Put together a detailed business plan with solid financial projections.
• Don't take no for an answer. Banks sometimes have to turn down solid projects because banking regulations restrict the amount of risk they can take. Another bank may be able to add your project to their loan portfolio.
• Don't overlook SBA guarantees. The U.S. Small Business Administration has streamlined their paperwork to help make more capital available to entrepreneurs; for many start-up businesses, an SBA guarantee can make the difference between getting financing and being turned down.
• Establish a solid relationship with your banker from the beginning. Your chances of getting financing are greatly increased if your banker knows you and your business.
• Don't assume your banker knows about your kind of business. Take time to explain the issues in your industry and how they affect your business. The more your banker knows about your business, the more confident they will be about your future.