There is always an element of risk to every venture. Whether you are planning to set up your own business, thinking of expanding your current business, adding an additional workforce to it or preparing to buy more equipment for your growing business. Never let your lack of funding be a hindrance to your steps in moving forward with your business. One option for you to pursue your plans is by applying for a business loan.
However, before you may do so, it is best that you assess first whether you are eligible to apply for that specific type of loan or not. As for most types of financial institutions, there are typical components that these institutions usually look into to check your creditworthiness.
Are you in need of extra funds to support your business? Vidalia Lending offers business loans to cater to your business needs. Our business loan is backed with a low-interest rate. No hidden charges. Visit our website today to learn more about our services.
To help you further on your endeavor, allow us to discuss the following components:
This refers to the money you have personally invested in your business, this money can be found on your financial records.
This allows your lender to check the level of confidence you have on your business. Note that lenders won’t bother risking their money if you yourself have nothing to lose if your business fails.
As for those who do not really have the money to fund their business. Your capital maybe your business plan. A comprehensive and clear business plan may imply how much dedication and passion you have for your business. YOUR BUSINESS PLAN IS VERY IMPORTANT.
Your lender will need to check all your financial statements and records to know how your business is currently doing.
If you have not yet started your venture, your lender will have to check your personal credit history, as well as income status and current assets and liabilities to assess your eligibility.
On the other hand, if you are a business owner who has been operating with consistent and high profits for the past three years, you are most likely to be granted a business loan.
You also have to consider offering collateral for your business loan. Remember that a secured business plan will most likely have a lower interest rate.
As for your collateral, you may offer the following:
- Machinery or equipment
- Any other business assets
- Your real estate property
- Personal assets
When we speak of “conditions” there are two things that you must take into great consideration:
- Your purpose for applying for a business loan
- The local economic conditions
One important thing to remember is that; as for the local economic conditions, if the current financial status of your industry is bad, then you are less likely to get approved for the loan.
This refers to the general impression you have depicted to your creditor/lender. This will help them determine whether you will be able to pay back your applied loan. Typically, the first thing that your potential creditor/lender will check are records pertaining to the following:
- Past due loans
- Delinquent credit card
- Mishandled accounts
- Legal cases filed against you, your partners or business
Vidalia Lending offers a variety of loan programs suited to your financial needs. For your business, you can choose between our Business Loan or Small Business loan. Our Business loan allows you to borrow up to P500,000. All you need to do is to grab your phone and apply online anytime, anywhere!