Business Loans - What Lenders Look For

Last Updated August 24 2009 18:55:56.

What’s important to lenders? Of course they want to see a good personal and business credit score. The personal FICO should be above 680 and the business score should be above a 70. However, the credit scores are not necessarily the first thing a lender looks for.

After speaking with several lenders last year to interview for our loan program, we found that one of the first things almost every lender did was call directory assistance under the name of the business to confirm that the company was listed. This is an area of critical importance for the lender to know that a business is a real company. The lenders determine this fact by calling directory assistance and verifying a business license for the company.

Before you seek a business bank loan, be sure you are listed with directory assistance and have a current business license; these two essentials as well as a good personal and business credit score will help ensure the success of your small business.

Financial Documentation

74% of bankers say financial documentation is the most important aspect in securing a small-business loan, while some 60% of small businesses get turned down because of poor documentation. That’s not including the number of businesses turned down for other reasons.

Before you apply for a small business loan, ask the lender what they want to see and give them more.

Business Credit Services has a small business loan division that for a small percentage of any loan we secure for you, we will package the loan and find the right lender for you.

Source: David Gass, President & CEO, Business Credit Services, Inc. Business Credit Services, Inc. specializes in helping businesses build business credit and establish an excellent corporate credit history. Download their free booklet How to Build Business Credit at http://corporatecredit.biz

Original Article: Business Loans - What Lenders Look For published at http://corporatecredit.biz

###

Free Reprint Rights! You must publish the article in its in entirety (including all links). Learn more by visiting our article and business content syndication page.