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Checklist for Conditions required by a Lender
Questions your Lender may ask you.
- Is this business able to repay the loan that I make
- Has the business been paying its other bills in the past
- Do the owners appear to know what they are doing
- Are the owners committed to the business and have they invested any cash of their own already
- What will happen to the repayment if the loan fails – that is, can I receive sufficient security to cover myself.
- Is the business profitable? Does it have a good track record?
- Is the business growing?
- Is the business controlling its costs or are they free with their spending?
- What are their cash flow projections and are they able to keep close to their cash flow planning?
- Does the business control its stock levels adequately?
- What is the competition in the market place and how does the potential borrower rank in terms of strength and weaknesses?
- What is the future of the industry?
- Do I feel comfortable with this business and with the person I am dealing with?
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