When reviewing a loan request, the lender is primarily concerned about repayment. To help determine this ability, many loan officers will order a copy of your business credit report from a credit reporting agency. Therefore, you should work with these agencies to help them present an accurate picture of your business.
Using the credit report and the information you have provided, the lending officer will consider the following issues:
- Have you invested savings or personal equity in your business totaling at least 25 percent to 50 percent of the loan you are requesting? (Lenders or investors will not finance 100 percent of your business.)
- Do you have a sound record of credit worthiness as indicated by your credit report, work history and letters of recommendation? Having a principal of the business with a FICO score of 680 or above is very important.
- Do you have sufficient experience and training to operate a successful business?
- Have you prepared a loan proposal and business plan that demonstrate your understanding of and commitment to the success of the business?
- Does the business have sufficient cash flow to make the monthly payments?
- Have you prepared a three (3) year cash flow and debt coverage projection?
DYNAMAX BUSINESS CREDIT