Before they provide you with a loan, your banker will assess if your company represents an acceptable risk for them and if it will be able to repay its loan.
This risk assessment will impact the interest rate you pay on a loan. It also determines:
- whether your get the loan
- what the lending terms and conditions will be
A banker will be comfortable lending money if your company’s assets and performance represent an acceptable level of risk.
Satisfy the 5 "Cs" of lending