The 4 Cs of Business Lending
In lending when we look to see if a client is fundable, we are looking for one of the four Cs.
But if you want money for your business, you only need one C to qualify.
The first C is Cash Flow.
When you have an existing business with good cash flow you can qualify for business funding. Verifiable cash flow substantially increases your chances of funding approval. There are many funding programs you might qualify for including Business Revenue Lending. If you don’t have cash flow your business still might have Collateral
The Second C – Collateral
Collateral for your business is really your business assets. You can use many things as collateral. These include equipment, purchase orders, even account receivables. Having collateral greatly increases your chances of approval.
If you don’t have cash flow or collateral, don’t worry. You still can qualify for business funding. Lenders also look at your business credit to qualify you.
Business Credit is our third C.
Lenders may lend money based on your business credit profile and score. If you have a good business credit profile you can use that as security to get funding.
If you don’t have business credit built now, call me. I can help you quickly build an excellent business credit score and profile. Maybe you are starting a new business, and you have no business credit, cash flow, or collateral. In this case you can still qualify for funding. But lenders will use your personal Credit to qualify you.
Personal Credit is the fourth and final C
Lenders will look at personal credit to approve you for funding. You can secure credit lines, through me, up to $250,000 with as low as a 650 credit score. These types of unsecured credit lines do not look at revenue or financials. Your credit is all they use to qualify you for funding. All you need is one of the four C’s to qualify for much of the business financing available to you today.
There are other factors affecting your ability to get credit, like the amount of debt you already have, and how heavily invested you are in your company. Even your personal credit can play a role in your approval or denial. Here we’ve covered five of them. The better the all-around picture you can paint, the better your chances of getting loan approvals
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