Starting a business requires passion, perseverance and, in many cases, some financial backing. On a recent episode of the JEDCO podcast, Louisiana Small Business Development Center Consultant Dianne Sclafani shared her pro tips for securing a loan:
Character: Have a strong credit history.
Capital: Show you’re willing to invest in your business.
Capacity: Have sufficient cash flow (income-to-debt ratio).
Collateral: Have assets that will act as loan security.
Condition: Know the demand for this business, the problem it’s solving, and why you are the one to solve it.
When you prepare your loan application, keep the five C’s in mind.