Running a business requires a lot of capital. Many companies need to apply for outside financing for one reason or another – be it keeping up with daily expenses, updating equipment or using it for something bigger, like expansion. Qualifying for a loan as a small business owner presents its own set of challenges, so how can you strengthen your chances for approval?
Small businesses seeking funding can improve their odds of receiving approval if they meet the qualifications that lenders have set in place. One method that many lenders use in assessing their applicants’ creditworthiness, and thus the level of risk in lending to them, is the five C’s of credit. This method evaluates these five factors: