If you are applying for a business loan, you might be thinking about starting a business or you have an existing business you want to grow.
If you are going to start a business, you will have already prepared your business plan, and your marketing plan in order to show the bank. If you include a credit policy with your marketing plan and business plan, your chances of being approved are much higher.
Banks will look for things like how much money is required to start your business, and how much and how long it will take you to pay it back. They want details on how you will repay the loan, details of any security you can offer, financial statements you’re business plan, which hopefully includes a credit policy.
The credit policy will show the bank, how you expect to be paid, what your payment terms will be and how you will handle delinquent accounts. This in essence lets them know your “plan” to pay them back and how you are going to do it.
Comment Preview