1 Make sure you look the part

First impressions count. Put on your best suit and brush your hair. And turn up five minutes early, not 10 minutes late. Bankers are conservative by nature, so turning up in an unwashed jumper complete with holes is not going to work. The more you look like you need the money, the less likely you are to get it.

Mark Curran, head of relationship management at Bank of Scotland business banking, said: “If you have taken the time to make the effort, you will undoubtedly stand a better chance. Look smart and be confident without being bolshy.”

2 Prepare in advance for the interview

These days most high-street banks provide free business start-up packs and even CDs to help you work through your business plan and cashflow statement. Use them. Not only will it impress your bank that you have taken the trouble to present your case in the suggested manner, it might also prove a useful exercise.

Curran said: “The worst thing you can do is arrive on the day with all this information in your head and then get flustered because the bank manager asks you some questions which are not in the order you were ready to give the answers.” You might also want to send the completed form to your bank manager before the meeting so he can look it over.

3 Do your sums beforehand

Bank managers like numbers. Know how much you want and how you are going to pay it back. That means how many units you want to make, how many sales you hope to make and how long it will be before you make a profit.

Curran said: “Arrive with a cashflow prediction for the first 12 months that shows your start-up costs and running costs.That means you have thought through exactly how much money you need and how much money your business is going to make.”

4 Start counting your pennies

Most banks will expect you to put up 30%-40% of the money you need yourself, depending on the type of business and the sector, to show your commitment. For a large loan, you may need to put up your house or other asset as security.

Curran said: “It’s very unlikely that the bank will give you all the funds to start up your business.”

5 Get the facts sorted out

Find out all there is to know about the market you are entering and the product or service you are going to provide. Research what and where the competition is, the size of the market and its predicted growth. Have some statistics ready to back up your claims.

Curran said: “If you’re able to answer these sorts of question, your bank manager will be impressed that you know your market and you know what you’re going to do. If you don’t know, you will just have to go away and do more work and it will be a waste of an appointment.”

6 Sell yourself as well as your plan

The bank is not only investing in your business idea, it is investing in you. So you need to convince the manager that you have the skills and experience for the task. You should treat the meeting much as you would treat a job interview. Prepare a CV and be ready to talk about yourself.

Graham Morgan, head of business development at NatWest, said: “The success of a business is down to an individual. If possible, show from previous experience that you have some skills and knowledge of what you are going into that will make your bank manager more comfortable with your proposal. If you don’t come across as passionate about your proposal, it is unlikely that you’re going to be able to sell your idea to the bank manager.”

7 Have your answers ready

Curran said: “Be prepared for some tough questions. The bank will challenge your business plan and will kick the tyres a bit. It will be a bit like the television show Dragons’ Den — albeit in the nicest possible way. If you don’t know the answer to a question, don’t bluff because you will undermine your personality and your strength.”

8 Know what you are asking for

You may think you want a loan, but have you thought about whether you would like a flexible loan that allows you to make lower payments for the first year? Or one that allows you to make payments only in summer? Or one that can be extended when the business needs to grow? Might you be better off with an overdraft, a visa card or leasing finance? Interest rates on business loans are typically set at 3%-6% above base rate.

9 Get the timing right

The best time to talk to your bank manager about a loan is before you have started the business. The worst thing you can do is to start on a shoestring and then struggle until you are desperate for a cash injection.

Graham said: “A bank would always want to be in there from the beginning. The biggest reason for failure of small businesses is that they don’t get the funding correct at the outset.”

10 Remember it is a two-way street

You need to be happy that you have chosen the right bank. Curran said: “The bank that says yes to the loan first might not be the right bank. It is as much about you interviewing your bank as it is about them interviewing you.”

• WHEN Dame Anita Roddick needed money to open her second Body Shop, the bank refused to lend her any. The only person who would was a friend, Ian McGlinn, who agreed to lend her £4,000 in exchange for a half share of the company. The shop did well and Roddick went on to build a retail empire of 2,000 shops.

  If Roddick had been able to get a bank loan for that £4,000 she would have simply been able to repay it over time with interest. Instead, when the sale of the business to L’Oréal for £652m is finalised, McGlinn, who still holds 22.4%, will receive £146m. To her credit, Roddick has always said she did not mind giving away half her company for £4,000, saying that without it there would have been no Body Shop. But the moral of the story is: if you can get a bank loan instead of giving away equity, do so.