Five keys to get a 'yes' for a small business loan.

• Author: Stewart, Bond
• Position: Special section: Finance, Insurance & Real Estate

What does it really take for a small business owner to get a loan from a bank today?" It's one of the top questions our bankers hear--and I would like to share our answer to this question.

According to the latest Wells Fargo/ Gallup Small Business Index--our quarterly survey of small business owners nationwide--cash flow and revenue are key concerns for small business owners. And more than one in three small business owners (34 percent) rated getting credit was "somewhat or very difficult." Many business owners entered the Great Recession carrying high levels of debt. As consumer spending dropped, sales declined and those business owners had a harder time obtaining credit.

While small businesses continue to face challenges in an uncertain economic environment, today a significant number of small businesses in Alaska and elsewhere are getting loans. At Wells Fargo, we saw a modest increase in loan demand in the first half of the year. The businesses that are applying for loans today are stronger than they were a year ago, and as stronger businesses come to Wells Fargo for loans, we are able to say "yes" to more small business owners.

So to help even more small businesses join those who are hearing "yes," we'd like to share with you the five things small business owners need to know when applying for a small business loan or line of credit.

* FIRST Show that your business generates steady cash flow. Cash flow is a key indicator of a business' health and its future prospects. When you can show reliable cash flow for your business, your bank can see that you have the resources to pay for new loans.

* SECOND Make sure your current debt load is manageable. Your bank wants to make sure your business has the ability to take on additional debt and is in a strong financial position to manage its debt payments.

* THIRD Maintain a good payment history. Before extending credit, a financial institution needs to be confident a business has the ability to repay. Your payment history provides an important record of your ability to responsibly pay down debt. Obtaining a debit or credit card is a good way to begin building a payment history for your business. Your bank can then...