* Our page may contain affiliate links. Clicking and making a purchase supports us without costing you more (I earn a commission from qualified purchases). Trust us - we recommend only what we love and believe in. Please read our Privacy Policy here to learn more.
When applying for credit or a loan the lender is looking at the 4 Cs to determine if the business is fundable or not.
Let us look at the 4 Cs:
Cash Flow
When a business has a 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,
Collateral
Collateral is the business assets. Example of business assets are equipment, purchase orders and accounts receivables just to name a few.
Having collateral greatly increases your chances of approval.
If you do not have cash flow or collateral, you still can qualify for business funding.
Credit (Business)
If you have a good business credit profile you can use that as security to get funding.
If you do not have business credit built now, schedule an appointment. 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.
Credit (Personal) final C that lenders will look at to approve you for funding.
The lender will look at your personal credit and if it is good, you may get the loan by being the guarantor of the loan, which means this could affect your personal credit.
These types of unsecured credit lines do not look at revenue or financials.
Your credit is all they use to qualify you for funding.
Looking for resources to increase your personal credit scores? Go to 3 Resources to Help Increase Personal Credit Scores
All you need is one of the four Cs to qualify for much of the business financing available to you today.
About the Author
Kimberly Lewis is currently the CEO of EPC Solutions LLC. She specializes in helping business owners establish excellent business credit scores and then leveraging those scores to access credit and cash for their businesses. For more information on business credit scores, business credit and business loans visit https://epc-solutions.net.