This morning's question is one I'm certain many entrepreneurs can relate to. Reader Charles asks why he's having trouble getting funding from his local bank for his start-up business.

The reality of bank lending—and most other kinds of investment—Charles, is that to secure funding, you need more than just a smashing idea. Sure it may seem like your new, exciting concept should carry the day.

Newsflash: It's not enough.

The image you have of a banker is probably correct. They can be stodgy and rigid, and while they don't like to hear that, here's why I say it: they have a short, but firm list of criteria that must be met before they hand out a loan. They are also intensely risk averse. In plain terms that means that they won't give a loan to someone who they think can't pay it back.

Bankers determine whether or not you'll end up in default a few ways. It may sound obvious, but squeaky clean credit helps. A lot. Any liens, bankruptcies, or even late payments on your credit card are going to hurt your chances of getting a loan. Along with your credit report (which trust us, your banker will look up), you should also provide your lender with a personal financial history, preferably 2-3 years worth of financial statements. While your checking account doesn't have to have six figures, any months in the red are probably going to be an issue. Finally, you've got to have equity in the business. That can take several forms—either a cash infusion of your own, or from friends or family. You could also take out a home equity line of credit.

If this sounds like a lot, it's because it is. For better or worse, banks want to ensure that they're going to get their money back—and then some. Keep all that in mind when you go for a loan, and you'll automatically increase your odds of success.