Kansas Business Financing - Five Strenghts of a Solid Borrower

Five Strenghts of a Solid Borrower The Ideal Business Borrower will have five basic strengths that will appeal to potential lenders: Good Credit – The ideal borrower will have a credit score above 700. Business Plan / Cash Flow - A good business person has developed a financial plan that shows how borrowed funds will be used and how they will be repaid. The plan is based on solid assumptions and credible data. Collateral – Lenders need solid collateral on their books in return for loaning money. The most attractive borrowers are prepared to offer anything from CD’s to real estate to factory equipment to secure a loan. Experience – Lenders like borrowers with experience managing or operating a business similar to the one they are borrowing money to start or acquire. Personal Investment – Most lenders expect the borrower to be investing at least 20% of the total project costs from their own savings when borrowing to start or acquire a business.

Five Strenghts of a Solid Borrower

The Ideal Business Borrower will have five basic strengths that will appeal to potential lenders:

Good Credit – The ideal borrower will have a credit score above 700.

Business Plan / Cash Flow - A good business person has developed a financial plan that shows how borrowed funds will be used and how they will be repaid. The plan is based on solid assumptions and credible data.

Collateral – Lenders need solid collateral on their books in return for loaning money. The most attractive borrowers are prepared to offer anything from CD’s to real estate to factory equipment to secure a loan.

Experience – Lenders like borrowers with experience managing or operating a business similar to the one they are borrowing money to start or acquire.

Personal Investment – Most lenders expect the borrower to be investing at least 20% of the total project costs from their own savings when borrowing to start or acquire a business.