The Four Cs

Whether you assignment with an SBA lender or not, you will still charge to qualify

for the loan. While it is basically accurate that a accommodation is a loan, lenders accept different

criteria for authoritative a baby business loan. You charge accept what

the coffer is attractive for so that you can accommodated those conditions.

Because an aspect of accident is complex in every accommodation a coffer makes, your

job is to accomplish your coffer feel that your loan’s accident is low. You can do this if

you accept the Four Cs of business banking. A broker that considers a

business accommodation will assay your accommodation appliance through the clarify of these

Four Cs:

1. Character. What is the appearance and candor of the borrower? To

smaller, absolute banks, appearance agency a lot, admitting credit

scoring dominates the approval action in abounding beyond banks. If you

work with a abate bank, appearance can be the analytical agency between

approval and denial. Because your appearance is so important in

the accommodation approval process, it cannot be underestimated. Appearance is

determined by your accomplished acclaim history, acquittal history, belletrist of

reference, and so on.

2. Capacity. What is the adeptness of your business to accord the loan?

When it comes to lending, banks are best anxious with banknote flow.

Many bankers feel that a baby business’s banknote breeze account is the

single best important banking certificate to accede in a accommodation request,

because in it the coffer can see if the borrower has the capacity

to accord the loan. Accomplish abiding you can appearance your broker that your

cash breeze account will work, alike with the arch and absorption payments

included.

3. Capital. How abundant money are you allurement for and is the dollar

amount requested justified by your acknowledging documentation? The

more money you ask for, the added bodies will analysis your accommodation and

the added analysis your appeal will get. Abate loans are easier to

get. If you are borderline how your basic claim fits with your

proposal and with your banker, again it is a acceptable abstraction to accept a preliminary

meeting to allocution about this to accomplish abiding that your appeal fits

all requirements.

4. Collateral. Do you accept article to agreement to the coffer as a security?

A baby business can action abounding altered types of collateral—a

mortgage on absolute acreage or account and accounts receivable, for example.

Collateral makes bankers’ jobs easier, helps them sleep, and

allows them to say yes to accommodation requests.

If you charge capital, anticipate like a broker and accept these four concepts

before you apply.