The biggest pitfall in applying for business loans is to know the best offer of loan being made banks. There are many banks out there who will be offering various schemes of loans to small business owners. Many banks will offer schemes that might look sweet on the face but they may have hidden expenses included in them. So before you apply for any particular scheme in any particular bank, make sure you have all the necessary information you need about that scheme. Also compare that scheme with the schemes being offered by other financial institutions to make sure that you don’t end up paying more than you should while returning the loan. If required talk to people about who have avail of that scheme about their experience. Take into account things like interest charged, the return period etc while considering a scheme. Apart from this also ensure that you have all the necessary documents & papers in order while applying for the loan.