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Know your credit status

Know your credit status – Before you apply for a business loan

Before you approach your lender, you need to know what your credit status is.

Maintain a good credit score

As soon as you apply for a business loan, your lender will investigate your credit history and request personal your credit report. This will give them insight into your ability to work responsibility with credit as well as your track record regarding the repayment of debt.

Thus, before you apply for a business loan – or any loan for that matter, it is important that you know your credit score and that you have a good credit score that will reflect a positive relationship with credit.

The information needed for a business loan

Beyond your credit score, you should be aware of some of the other things that a lender will look at when they are considering your online loan application. These include your debt to income ratio – your monthly personal debt payments should not be more than a third of your gross monthly income.

They will also look at your time in the business as a determining factor of your reliability, your report on industry risk and your report on cash flow.

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