Posts Tagged ‘Secured loan’

Business Loans: Translating Potential for Financial Success and Independence.

January 1st, 2010

A good entrepreneur knows that the essence of striking gold in business is finding the right opportunity and going after it despite the risks. These opportunities keep on sprouting when you are doing business. Or you might have stumbled upon one and contemplating taking it. Your financial condition may not help you to translate your potential for financial success and independence. Business loans can facilitate this translation.

Obtaining finance is central for starting a new business or making business grow. Financing a business through business loans can be a formidable task. But a good preparation can easily sort out any matter detrimental to getting your business loans approved. Taking a loan for business is an important decision. » Read more: Business Loans: Translating Potential for Financial Success and Independence.

The 5 C’s to Success – Securing a Business Loan With a Bank

December 11th, 2008

Beginning or expanding a business can be an exciting venture. But to do so successfully, a business owner is going to need capital. That comes from either the owner’s personal check book or financing extended through a bank. To secure financing through a bank, a business owner must understand the 5 C’s of Credit. These guidelines are used by financial institutions as a way of analyzing a borrower’s request for a loan. The 5 C’s: Cash Flow, Collateral, Capital, Character and Conditions are the major elements a bank uses to examine a business and its owner during the loan process. Each can have an impact on a funding request.

Cash Flow
A business owner may feel he or she needs additional capital to run a business, but they must also demonstrate the ability to repay the loan being considered. In determining this, a bank will analyze the company’s projected and historical cash flow in comparison to its debt. A commonly used method, the “EBITDA” ratio looks at a business’ Earnings Before Interest, Taxes, Depreciation and Amortization. Broadly speaking, it’s the measure of the cash flow generated by a business. » Read more: The 5 C’s to Success – Securing a Business Loan With a Bank

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