It isn’t a new story that access to credit is one of the foremost challenges facing U.S. small businesses today. We hear every day about prospective and current business owners struggling to start or grow their business because of a lack of capital necessary to bring their ideas and goals to fruition.

The latest small business lending numbers show that lending rose just 3 percent in July after falling five out of the previous six months, according to a recent survey by PayNet, a research firm that tracks loans to small business. Small business owners have said they are borrowing less than they did before because of uncertainty about their sales and the current economic climate.

Franchisees, a key part of the U.S. small business segment, are also citing more difficulty in accessing credit, especially prospective franchise owners who often do not have much collateral, business ownership experience or established corporate credit scores and find that banks are increasingly rejecting their loan applications. The Franchise Lending Index from the International Franchise Association and BoeFly revealed that loan disbursement volumes for franchise owners decreased more than 3.6 percent from June to July. This was directly following a nearly 5.75 percent increase in franchise lending in June, and year-over-year growth in lending has also been positive.

While these numbers might make small business lending seem like a rollercoaster with mostly downhill slopes, it is important to understand that the decisions of lenders, federal agencies and others are driven by many factors. The components of disbursements, such as lending standards and small business loan volumes, are never black and white.

The fact is, many banks out there are ready and willing to lend to qualified borrowers. Many banks are beginning to offer more support to small businesses. In addition to being more proactive in seeking out those in need of financing, banks are looking to provide small business owners, especially new entrepreneurs, with financial guidance and advice.

The support is out there, but the big issue for many small business owners is often a sense of uncertainty about their “fundability” to lenders. In other words, business owners must have a solid understanding of the factors banks generally value most when deciding whether or not to fund small business loans.

Credit-Worthy Steps

There are a number of actionable steps prospective and current small business owners should take to present themselves as credit-worthy candidates to banks, whether they need capital to start up, purchase new equipment or hire more employees:

Be prepared. Preparation entails a brief summary of a small business owner’s transaction, including loan purpose, loan amount, type of business, debt service coverage, primary collateral and loan to value, debt to worth ratio, management experience and credit score.

Talk to multiple lenders. No two lenders are the same, and when casting a wide net and considering multiple options, business owners have a better chance of securing a loan under the best possible terms. Important factors to consider include loans offered at the lowest rate, longer term and lower monthly payments.

Think like a banker. A banker’s top questions might include: Is there a clear vision as to how the business will pay back the loan? If things get tough, is there a fallback position? Does the business owner have management experience and good credit history? And Does the business owner have ‘skin in the game’, meaning money at risk? Small business owners need to ask themselves the same questions and develop the right answers.

Respond quickly. When a small business owner is engaged with a banker, he should expect clarifying questions before a loan is approved. It is very important to respond to these inquiries in a timely manner. Bankers deal with numerous loan requests, so if a business owner is slow in responding to a banker’s inquiry, he or she may lose momentum, and ultimately the banker’s attention and interest.

Sell yourself. It’s a huge market, and small business bankers face an almost endless supply of business borrowers seeking financing. To stand out, a business owner must be able to pitch his or her business as creditworthy by presenting accurate and complete information and articulation of a clear vision and plan. This can be made even more effective if done over the phone or, better yet, in person.

Even when the numbers indicate that lending has slowed, there will always remain a need for credit access among small business owners, and there will always be a need for banks to fund loans for qualified borrowers in order to help the economy gain momentum.

It is more important than ever for small business owners and lenders to work together and achieve a sense of mutual understanding and support.

Mike Rozman, based in Needham, is

co-president and chief strategy

officer of BoeFly LLC, www.boefly.com