Be a smart borrower: get the capital you need to grow your business.

• Author: Carfi, Tim
• Position: Money Talk

In 2009, Utah experienced the single greatest job decline since the Great Depression. However, the state's unemployment rate remains below the national average, and the state is expected to gain more than 19,000 jobs in 2011, according to the Bureau of Economic and Business Research at the University of Utah. Job growth is good news for businesses across the state because it generally signals broader economic growth, which benefits state residents as well.

At this point in a recovery, business owners often start thinking about tapping into new sources of capital to grow their businesses. The good news is many lenders are actively seeking new investments. For example, in the second quarter of 2010, GE Capital made $2.7 billion in loans to small and mid-sized businesses across the United States, up 135 percent from the first quarter.

What makes a borrower smart and successful in the quest for capital? Drawing on our experience with thousands of commercial borrowers, GE Capital set out to answer that question. We found that there are important variables beyond cash flow and credit history. These 10 tips are designed to improve commercial borrowers' chances of getting the capital they need.

Reach Out Early

The best time to approach a lender is before you need capital. Build a relationship and educate the lender about your business. A lender who believes in you and your business can be a powerful advocate during the underwriting process. If you wait until you need money in a hurry, you may limit your options and those of your lender.

Treat Your Lender as a Partner

View your lender as a partner with shared goals, not as a vendor. Come to the table with an understanding of the lender's perspective. Be flexible and open-minded and look for mutually beneficial solutions. Also, get to know as many people as possible on the lending team. Not only will you have access to more information, but the process is likely to run smoother as well.

Truth Trumps: Be Transparent

You must be upfront. The real deal killer isn't negative information or financial setbacks. It's having the lender invest time and resources only to find out you've provided information that is materially different from what surfaces during the underwriting process.

Tell a Compelling Story

Every business has a story. Tell yours in a way that highlights successes and market knowledge and demonstrates how you've solved problems. Lenders understand that the downturn has impacted businesses...