Tips To Improve Chances Of Getting A Small Business Loan8:42 AM
A new startup, a new grocery store or an established eatery looking to expand further – all are smal...
A new startup, a new grocery store or an established eatery looking to expand further – all are small businesses. Such companies often need capital for their new or expanding business and have specific loan requirements. A brick and mortar business may need money to expand into eCommerce, an established shop may want to open two more stores in a new locality, or a vegetarian restaurant may want to expand into the paleo diet segment and needs money for more retail space.
What Do Lenders Look For?Simply put, the lender looks for certainty that the borrower will repay his small business loan in the allotted timeframe. This certainty can be indicated by potential business profitability,liquidity of business capital, minimal debt amount, healthy turnover rate of inventory and a healthy customer base. Anything that assures the lender of the above will enhance the loan approval. Anything that raises question about these factors may lead to rejection.
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