Behind every loan approval, there stands great information about a client. Lenders look at a number of factors when making a decision on whether or not to approve a loan, including a borrower’s history of borrowing and paying back loans, as well as their current financial situation. Lenders also typically look at a borrower’s credit reports and credit scores to get a snapshot of their overall creditworthiness. Business owners who need money to expand their businesses may need to submit documentation, such as Tax Return Forms and Profit and Loss Statements, to the lending company in order to get a loan.
Credit reporting companies compile and maintain data on borrowers’ credit worthiness. Prospective lenders use this
information to decide whether to approve a loan. A sustainable business has a good chance of succeeding if it has a sound business plan, adequate financial resources, and strong management. Successful businesses make good on their loan payments and have a competitive landscape that allows them to grow. Key personnel must be skilled in developing and executing a business plan, marketing and selling the product or service, and managing the finances.