Getting Lender-Ready

You're starting to grow your business and now you think you're about ready for some working capital to expand on your products and services. Follow the Five C's of Credit, which is what bankers look at to determine if you are eligible for a loan, and you'll be well on your way to being "lender-ready."

The Five C's of Credit

1. Cash Flow/ Capacity - Your ability repay the loan over time.

2. Collateral - The lender may require you to support your loan with something of value such as real property and/or business assets.

3. Credit - Your credit is generally based on a credit report which includes any of your current debt such as credit cards or other types of loans. The banker will consider your payment history and outstanding balances on your current debt. A history of paying bills on-time is essential.

4. Character - The lender will look for longevity in the workplace and residence to demonstrate stability and reliability. Additionally, industry and management experience are also key with the lenders.

5. Capital - This is typically a measure of the net worth of the business and/or principal. (Existing: the value of the amount of equity in the company. Start-up: the amount of cash injection into the project as well as net worth of principal. )

Call us today at 619-789-4400 option 4 to get started on your business loan!