Key Factors Behind The Credit Decision

At Wise Men of Gotham, we look at each company as a whole. For this reason, it always takes time and skill to make a loan decision, so that the customer can get one loan decision that can be safely made at one time. The Wise Men of Gotham makes a loan decision by considering, among other things.

 

Personal credit history

Personal credit history

Personal credit information can work to the advantage or disadvantage of a business when applying for a business loan. An entrepreneur’s credit default notes may reduce the amount of loan granted or, in the worst cases, be a barrier to a business loan. When a business is in its infancy, personal credit information matters more because there is little information on turnover and payment behavior.

 

Company age

Company age

The age of the company and the continuity of its operations influence the loan decision. Just starting and developing a company hasn’t had time to grow its customer base, so getting a corporate loan is also a bit more challenging. After several years of business, it is easier for the lender to make a positive loan decision because the risks are much lower. A Wise Men of Gotham business loan is available to a company that has been in business for 6 months.

 

Cash flow

credit

The cash flow of a business tells the borrower roughly how much loan amount and installments the borrower can commit to. It is also in the lender’s interest to have a reasonable amount of corporate credit. In services and many other industries, seasonal fluctuations can have a major impact on sales and cash flow, which is perfectly understandable and is taken into account in the loan decision.

 

Company credit report

Company credit report

The company’s credit report provides the financier with information on, for example, late payments. If the company is regularly late in paying, this may indicate problems with the repayment of the loan and thus adversely affect the credit decision. It is a good idea for a small business to strive to make payments on time, even if the Corporate Loan is currently not timely.

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