Five Things Your Recent Credit History Report Can Tell Your Banker About Your Real Ability To Repay A Loan!Part One
Is your local banker psychic? Because believe it or not, there is an awful lot they they can tell about your future ability to repay a loan request (of practically) any size.
Simply be studying your recent past credit history report. It may seem improbable and highly unlikely, but it’s true.
And the other thing is, with all the daily increased competition for your local bankers extremely limited funds.
Here are five solid ways for you to positively grease the skids in your favor. And hopefully get that long awaited phone call and or letter, acknowledging that your loan request has finally been approved!
Just Because Your Banker Isn’t Psychic Doesn’t Mean They Can’t Study Your Recent Credit History Report And Know In Advance What You’re Most Likely To to Do!
The following five considerations are often referred to as the (The Five C’s ) of credit. And they will help your local banker decide “who” should get access to their depositor’s hard earned money and (more importantly), who should not!
Entrepreneur, when in doubt, let the five “C’s” of credit be your ultimate guide. Answer or address the following five major concerns, as honestly and supply as much needed detail as you can.
And you’ll most certainly make your bankers short list of bank loan approval applicants! (Here they are in no particular order.)
2.) Second consideration” Capital”: This is your percentage of personal money,( your initial equity if you will), that you (and all other relevant principals), have initially invested in the business.
Obviously the higher your own personal percentage is, the less risk exposure there is to the lender! (And that my friend is music to their ears!)
The More Stable Your Business Or Service Appears! (the More Likely You Are To Secure A Loan!)
And that’s “what” they want to see. The more you personally have at risk, the more committed you seem in your bankers eyes!
3.) Third consideration: ” Collateral”: Any additional forms of marketable business assets and or personal guarantees, that you (and all other principals) involved can provide the lender upfront, only help strengthen your loan request possibilities.
Some lenders may actually require (both) you (and all the other main principals involved), personal guarantee in additional to sufficient collateral (in their eyes), in order to secure that all important first major loan!
Establish A Proven Track Record Of Paying Your Bills Before You Seek Any Type Of Traditional Financing Of Any Kind!
4.) Four consideration : “Capacity” : Entrepreneur, before loaning you a dime! Your banker has got to know, “how” likely are you going to be able to repay this loan! And “how” fast and how long will it reasonably take?
Which means they will definitely want to see copies of your past, current and future cash flow projections.(And it’s always best that your future cash flow projections remain on the lower end of the scale!)
5.) Fifth consideration: “Character”: They’ll look to see “how” timely you’ve paid your past bills! And any relevant past professional and or previous personal small business ownership ( and or relevant senior management) experiences you may previously had.
Your Credit History Report Is Like A Report Card Of Your Business!
Plus, if you have any and all relevant educational background that might prove helpful as well. Make this short list your major priority.
And you’re well on your way to strategically using your past credit history report as an effective marketing/PR tool, for securing future financing! Any questions?
Please list at least two simple spin off concepts (in the comments section below) that you can definitely apply to your business, product or service in the next 30 days or less!
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