When you are going to apply for loans for your own business , either because you need capital to start it, or money to boost it, banks will evaluate you to see if you meet the requirements to access the loan. Know what banks evaluate.
Your credit history
A credit history will be your best ally to access larger and larger loans. Therefore it is advisable to have some activity. If you have no credit history as a company, neglect, there are other aspects that will also take into account.
Your time of existence in the market
If you do not have a credit history as a company, banks will evaluate the time you exist in the market. Ideally, you have at least six months of operation.
This will let you know, according to your income and expenses, if you are part of profitable businesses and that is that banks need to recover the money they will lend you.
Your ability to pay
Banks cannot lend you more money than you can afford, so they must evaluate your ability to pay, so they will check your company’s cash flow.
This lets you know your company is a formal business. They will check if you have accounts with your tax returns. If not, try to have the necessary documentation to show that you are in the process of formalizing your business.
Your tax address
Banks will need a place to send notifications or communications related to your loan. It is difficult for them to give a loan if there is no such address.
These are the aspects that banks will evaluate before approving the loan of money that you request.
Try to have everything in order before introducing yourself to financial institutions. If everything is correct you can soon have the loan you need for your business . Remember to be punctual in your payments to avoid damaging your credit history .