The 4 C's of Business Lending

In lending when we look to see if a client is fundable, we are looking for one of the four Cs.

But if you want money for your business, you only need one C to qualify.

The first C is Cash Flow. When you have an existing business with good cash flow you can qualify for business funding. Verifiable cash flow substantially increases your chances of funding approval. There are many funding programs you might qualify for including Business Revenue Lending.

If you don’t have cash flow your business still might have Collateral, the second C.

Collateral for your business is really your business assets. You can use many things as collateral. These include equipment, purchase orders, even account receivables. Having collateral greatly increases your chances of approval. If you don’t have cash flow or collateral, don’t worry. You still can qualify for business funding.

Lenders also look at your business credit to qualify you. Business Credit is our third C.

Lenders may lend money based on your business credit profile and score. If you have a good business credit profile you can use that as security to get funding. If you don’t have business credit built now, call me. I can help you quickly build an excellent business credit score and profile. Maybe you are starting a new business, and you have no business credit, cash flow, or collateral. In this case you can still qualify for funding. But lenders will use your personal Credit to qualify you.

Personal Credit is the fourth and final C that lenders will look at to approve you for funding. These types of unsecured credit lines do not look at revenue or financials. Your credit is all they use to qualify you for funding.

All you need is one of the four C’s to qualify for much of the business financing available to you today.

Key Takeaway:

In the world of business lending, you don’t need to excel in all four Cs—just one can open the door to funding opportunities. Whether you rely on strong cash flow, valuable collateral, a solid business credit profile, or your personal credit, there’s a path to financing that fits your situation.

Ready to find out where you stand and what funding you qualify for? Visit expertbusinessadvisors.org today to get started!