How Do I Get My Business Loan Approved?
As a business intermediary, I transact business sales, purchases and financing. I am finding that even with SBA guarantees on business acquisitions, the banks want 1:1 collateral coverage even though the SBA guarantee is supposed to eliminate that requirement. Typically, bankers look at the following items to make a determination of whether your loan will be approved: Good credit rating for both the company and its owner. (Good is a subjective term and each banker makes a decision as to whether your score is "good enough" for them). A debt-coverage ratio of 1.25. At least two years in business A history of profitability Management/industry experience Collateral for loan - type, value, condition Secondary source of repayment - (i.e. do you have outside income? Do you have other assets such as securities, cash, real estate?) Current economic climate and how your industry is affected Character - do you have references? Have you worked in this industry for a long time? Have