"We are now entering the harshest part of the recession," Nigel Gault, chief U.S. economist for IHS Global Insight. One reason for concern is that the figures released this week do not reflect the October Panic that swept through the global financial markets as the credit system virtually shut down. The economy has deteriorated sharply since that time, particularly in October; and now, even as credit markets begin to heal, we have to undo that damage, and that damage means that the economy is going to get worse before it gets better.

If you understand that there are many myths out there and what the truths actually are you will have a clear path ahead of you to regain your business' stability. For instance, when most think of loans they think of banks. While banks consume much time reviewing loan applications and are fairly rigid about requiring full documentation, they are a viable source of funds and should not be ignored. One of the best starting points when seeking a business loan is with the local bank where you already have a business checking account. The key is familiarity and history. They have an existing relationship with you, and they know your account track record. The bank can see how you are managing your finances, if you've had bounced checks, what your average balance is, and more.

Bank Myths

Many entrepreneurs have been misled about how banks work. The following four myths about loan processing need to be dispelled.

Myth 1: Banks are in the business to lend money.
This is false, because banks are in business to make money. Lending happens to be how they earn their money. Repayment of the loan is the key to the bank's profitability; be sure your loan application details a plan for complete payoff.

Myth 2: Banks have standard loan policies.
Banks do have lending policies, but they are frequently changed to please the customer. It is very common in commercial banking to have a wide array of customers; having a fixed set of rules would not allow the bank the flexibility needed to meet these eclectic needs. Ask for what you want.

Myth 3: Banks have unlimited loan funds.
Banks actually have finite amounts to lend; it's all determined by the amount of deposits on hand. Banks cannot loan money they do not have; therefore, be certain to present yourself and your loan request in the best possible light. Remember, others are applying for that money too.

Myth 4: Banks do not need your business.

Fortunately, this is also false. Banks need to grow as most businesses do, or they will be bought, or forced out. Do not feel like a second-class citizen because you are asking for a loan. Remember, they need you!

A lot of companies will not make it through these times of economic turmoil. The companies that see through this will come out significantly better off. It's important for you as a business owner to not let the media determine what you are capable of. If your business is built on a strong foundation you will be able to weather any storm.