Monday, September 09, 2002
Starting up and getting a loan
What lenders are looking for:
Put yourself in the shoes of your lender – do you appear to be a low risk finance proposition? Remember the lenders’ 4 Cs when they consider loaning you money:
Character: Do you come across as confident enough in your ability to service this loan? Do you appear to know what you are talking about or do you seem on unsure territory?
Capacity: Will you be able to repay your loan?
Collateral: Are you providing security against the loan?
Capital: How much are you trying to borrow and is this amount realistic?
When you do manage to secure a loan, you should ensure that you know how much it is going to cost you, and, if it is a variable rate loan, the impact an increase or decrease in the interest rates will have on your repayments.
What lenders are looking for:
Put yourself in the shoes of your lender – do you appear to be a low risk finance proposition? Remember the lenders’ 4 Cs when they consider loaning you money:
Character: Do you come across as confident enough in your ability to service this loan? Do you appear to know what you are talking about or do you seem on unsure territory?
Capacity: Will you be able to repay your loan?
Collateral: Are you providing security against the loan?
Capital: How much are you trying to borrow and is this amount realistic?
When you do manage to secure a loan, you should ensure that you know how much it is going to cost you, and, if it is a variable rate loan, the impact an increase or decrease in the interest rates will have on your repayments.
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posted by Brian & Brian at 10:43 AM
