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Credit Factors

This section provides important information about the factors that lenders take into consideration when reviewing loan applications.
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    Equity Investment

    Business loan applicants must have a reasonable amount invested in their business. This ensures that, when combined with borrowed funds, the business can operate on a sound basis.

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    Earnings Requirements

    Financial obligations are paid with cash, not 'on paper' profits. When cash outflow exceeds cash inflow for an extended period of time, a business cannot continue to operate.

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    Working Capital

    Working capital is defined as the difference between current assets and current liabilities. Current assets are the most liquid of your assets.

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    Collateral

    Collateral is an additional form of security that can be used to assure a lender that you have a second source of loan repayment.

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    Resource Management

    Resource management is how you handle the day-to-day affairs of your business, including how you pay your debts, collect on debts, deliver services or products to customers, and manage inventory.