03/11/2022
Credit Sources to Obtain before loan application:
Reports from central bank is vital evidence to prove a credit worthiness of a business or an individual. The reports convey and lists all credit-based facilities utilized by various companies and individuals. In addition, you can also get opinions from various other banks.
An inspection of your business premises will take place thereafter. This provides confidence to the credit provider that the business is stable and risk free. In addition, this can be coupled with analysis of annual reports and financial statements. These strengthens the judgment of the credit provider of the firm’s financial stability and ability to pay back loans. Cash flow statement is a crucial element in this regard to understand the cash richness of a firm.
Current account statements can be also shared with credit providers followed by inputs from suppliers of credit information with the firm. The banks will also question suppliers as and when needed prior to loan approvals. This is followed by customer application where you need to fill in the demographic information followed by assets processed, liabilities, tax particulars, details of security to be offered and purpose of facility.
Customer interviews take place to build customer relations and as well as to discuss about details on trade and industry and why funds are required and what form of security can be placed to issue the loan. Soon after a business plan should be set claiming projects based present activity, target markets, new products, expansion plans and profitability followed by a business visit.
