Checklist for Conditions required by a Lender

Questions your Lender may ask you.

  1. Is this business able to repay the loan that I make

  2. Has the business been paying its other bills in the past

  3. Do the owners appear to know what they are doing

  4. Are the owners committed to the business and have they invested any cash of their own already

  5. What will happen to the repayment if the loan fails – that is, can I receive sufficient security to cover myself.

  6. Is the business profitable? Does it have a good track record?

  7. Is the business growing?

  8. Is the business controlling its costs or are they free with their spending?

  9. What are their cash flow projections and are they able to keep close to their cash flow planning?

  10. Does the business control its stock levels adequately?

  11. What is the competition in the market place and how does the potential borrower rank in terms of strength and weaknesses?

  12. What is the future of the industry?

  13. Do I feel comfortable with this business and with the person I am dealing with?

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