Corey Rockafeler : A global leader in small and medium-sized business financing

  

A global leader in small and medium-sized business financing

                       

                        Do you qualify for a small business term loan?

                                           By Corey Rockafeler

One challenge many small business lenders face is managing client expectations. There is often a disconnect between what a client want and what they qualify for. Outside of SBA programs, small business term-loans usually come with a lender’s best rates and pricing. Rates usually start in the single digits and terms usually extend anywhere from four to seven years. That begets the $ 64,000 question: Do you qualify?

Here is a check list. If you don’t have all these items, chances are you will not qualify. Good news is there are still many other well-priced loan solutions you will qualify for.

• FICO SCORE: Usually 680+ (sometimes if a file is strong enough 640 +FICO)
• TIME IN BUSINESS: Usually 3 Years
• AT LEAST ONE YEAR OF PROFITABLITY IN PAST TWO YEARS.
• SALES VOLUME: Above $250,000 usually- $300,000 in gross sales.
• ARE YOU IN A RESTRICTED INDUSTRY: All lenders have industry restrictions. They can range from cannabis to residential construction. Always ask a lender if your industry is on their restricted list.

• DEBT SERVICE COVER RATIO: 1.25 OR ABOVE.
• STRONG ENDING BALANCES ON YOUR BUSINESS BANK STATEMENTS
• STRONG AVERAGE DAILY BANK BALANCES ON BUSINESS BANK STATEMENTS
• MINIMAL IF ANY NEGATIVE DAYS ON YOUR BUSINESS BANK STATEMENTS.
• FEW IF ANY RETURNED CHECKS
• STABLE AND CONSISTENT BANK DEPOSITS

Forewarned is forearmed. Today's new era in small business lending is about empowerment with the right information to make the right decision.