Applying for a business loan has become an increasingly formulaic process. Gone are the days of building a strong, personal relationship with your lender and resting assured they would advocate on your behalf when it came time to file a loan application.
Lenders are no longer the decision makers. That role belongs to credit officers who, under most circumstances, will never have met you before evaluating your loan application. They base their decisions impacting the future of your business solely on the paperwork and evidence provided to them.
That is why it’s important now more than ever to take the necessary steps to accurately document and demonstrate your businesses’ creditworthiness. Understanding how the five factors below affect your credit can help present a stronger case for your business when applying for a loan.