The bank official who reviews the loan request is focused on repayment. Most loan officers request a copy of your business credit report to determine your ability to repay.

The lending officer will consider the following issues while using the information you provided and the credit report:

Have you invested at least 25% or 50% of savings or personal equity into the business for the loan you are requesting? (Keep in mind that 100% of your business will not be financed by an investor.)
Do your work history, your credit report and letters of recommendation show a healthy record of credit worthiness? This is a key factor.
Do you have the training and experience necessary to operate a successful business?
Do your loan proposal and business plan document your knowledge of and dedication to the success of the business?
Is the cash flow of the business sufficient to make the monthly payments on the requested loan?

Posted in: Financing