12 Jan

14 questions you should answer before applying for a loan

Here are 14 questions that most lenders will ask you when you are applying for a loan, so be prepared to answer them.

  1. How much money do you need for your business?
  2. How much have you invested and/or intend on investing?
  3. What is the purpose of the money? (working capital, equipment purchase, startup expenses, inventory, real estate)
  4. How much money do you feel comfortable paying back on a monthly basis?
  5. How many owners are there in the business?
  6. What is the personal credit score of the owners that have 20% or more equity in the business?
  7. Do you have access to a co-signer if needed?
  8. Have you applied for financing in the past? If yes, what was the outcome?
  9. Do you have any outstanding liens or judgments?
  10. Have you or any owner been in foreclosure/modification/ Bankruptcy /or student loan default in the last 2 years?
  11. Have you or any owner been late (30 days or more) on rent or any mortgage in the last 12 months?
  12. Is your business currently profitable?
  13. Do you have income outside of the business?
  14. Do you have collateral to back up the loan?

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