What Lenders look for - Small & Mid-sized Business

When a lender considers extending a line of credit to a company, one of the items it will look for is a well-prepared business proposal with proper supporting documentation. Besides stating the purpose of the loan and exactly how the money will be used, some additional supporting documents the lender will look for are; resumes of the principals of the business, a repayment schedule that shows the ability to pay back the loan, collateral to secure the loan, business and personal credit scores (a credit score is simply a measure that estimates, based on solid data, the probability of an individual to pay their debts to their lenders) and business and personal financial statements. This are basic concepts when small or mid-size business are watching when extending line of credit to customers, so when you request a credit line and you are into a position of financial strength, healthy bank rating, good credit score for your business, good cash flow, etc, your chances of being approved is much greater