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25 Jan
  • Editorial Team
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"Will they, will they not?

Well, if you are not sure whether the financial institutions will approve your business loan request or not, there are simpler ways to guess it than plucking petals. One must always think from the lenders' perspective and judge if as an applicant, he/she meets the criteria. The loan is issued on the basis of the borrower’s creditworthiness, which is evaluated by the 5 Cs – character, capacity, capital, conditions, and collateral. If you pass this acid test, then right financial documents and a blueprint of a rock-solid business plan are all you will need to furnish to get the loan. Let’s learn the art of cracking business loan applications.

Did You Know

Disbursement

The act of paying out money for any kind of transaction is known as disbursement. From a lending perspective this usual implies the transfer of the loan amount to the borrower. It may cover paying to operate a business, dividend payments, cash outflow etc. So if disbursements are more than revenues, then cash flow of an entity is negative, and may indicate possible insolvency.

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