Building a relationship with your lender can go a long way. It will benefit both you and your lender when you can show them your business plan and the ability to communicate effectively. Likewise, being proactive can help your lender advocate for you. The smartest borrowers contact their lenders 18 months before the end of their loan term to make the necessary adjustments. In addition, smart borrowers are proactive in choosing the financing structure that will best benefit their business. Lastly, smart borrowers look for companies that have different financing structures to help them choose the one that will work best for their business.

While borrowing money is not always easy, it can help you to make important purchases and make a big life change. For many people, they need to pay for education, a first home, or even a business venture. Often, though, people don’t realize that their major moves often require some sort of debt. Borrowing without having any type of plan in place is a scary idea. Here are five tips to be a smart borrower.