When Your Banker Says "No"

There is an old saying in banking saying "you qualify for a loan or credit when you don't need it." Today, the saying is "you don't qualify for any credit whether you need it or not."

Small businesses with limited reserves aren't the only ones being declined. With the financial crisis in full swing, banks essentially have restricted all lending even to healthy companies able to pass the 5 C's of business loan qualification. It's easy to adopt a wait-and-see attitude but in times like these you have to be proactive to survive. Here's a few tips for your business when your banker says "no":

Connect With Others: The best approach to uncertainty is to band together with other positive proactive business owners. The operative word here is "positive." Forming a peer group to offer support and creative brainstorming can help lift your spirits and find workable solutions.

Use Low-Budget High Impact Marketing: Get creative by finding low-cost marketing methods to promote your business. Instead of a Customer Appreciation Day, run a Customer Recession Day giving away a great deal on Sunday at midnight while garnering free press mentions. Use your peer group to come up with effective marketing ideas.

Sharpen the Sales Saw: In this contracting market, you need to be a sales superstar. You can't afford to let a single objection make you retreat. The survivors can overcome sales slumps by uncovering customer problems, building trust and closing the deal.