The 4 C’s of Business Lending

The 4 C's of Business Lending

In lending when we look to see if a client is fundable, we are looking for one of the four C’s.

If you want money for your business, though, you just need one C.

#1 Cash Flow

The first C stands for Cash Flow. You can apply for business funding if you have an existing business with a positive cash flow.

Your prospects of receiving funding are greatly improved if you have verifiable cash flow.

There are a variety of finance options available to you, including Business Revenue Lending.

#2 Collateral

Even if you don’t have cash flow, your company might have Collateral, the second C.

Your business’s collateral is actually your business assets. You can utilize a variety of items as collateral.

Equipment, purchase orders, and even account receivables are examples.

Having collateral raises your chances of being approved significantly.

Don’t be concerned if you lack cash flow or collateral. You may still be eligible for business financing.

#3 Business Credit

Lenders also consider your business credit when deciding whether or not to lend to you. Our third C is Business Credit.

Lenders may be willing to lend money to you based on your company’s credit record and score.

You can use your business credit profile as collateral to obtain funding if you have a solid credit profile.

If you don’t already have business credit, give us a call; We can help you quickly establish a strong credit score and profile.

Perhaps you’re establishing a new company and don’t have any business credit, cash flow, or collateral.

You may still be eligible for financing in this situation.

Lenders, on the other hand, will use your personal credit to determine your eligibility.

#4 Personal Credit

Personal credit is the fourth and final C that lenders will consider when deciding whether or not to approve you for funding.

With as little as a 650 credit score, you can get credit lines up to $250,000 with me.

These unsecured loan lines do not take into account revenue or financials.

They just use your credit to determine whether or not you are eligible for funding.

To qualify for the majority of the company financing available today, you just need to meet one of the four C’s.

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