Financing self-assessment
Check your loan readiness
Answer a few questions about your business and get a straight read on how your numbers compare with what lenders commonly look for — before you sit down with one.
Step 1 of 5
How would you like to start?
Financial statements means a balance sheet or income statement for the business. Your choice sets the price of this calculation.
What lenders look at
The 5 Cs of credit, in plain language
Banks and credit unions have weighed small business loans the same basic way for decades, often called the “5 Cs of credit”. Loan Ready checks the parts you control, so you can see how your numbers compare with what loan officers commonly look for.
Capacity
Can the business afford the payments?
Lenders compare the cash your business brings in with what goes out, including the new loan payment. This is usually the single biggest factor.
Character
Will you do what you say?
Lenders judge you as a person and an operator: your experience in the industry, your honesty, and how well you know your own numbers.
Capital
How much of your own money is in it?
A down payment and a healthy personal net worth show commitment, and give you a cushion if the business has a slow stretch.
Collateral
What backs the loan if things go wrong?
Tangible assets the business owns, like equipment, inventory and property, give the lender something real behind the loan.
Credit
How have you paid what you owed before?
Lenders pull a credit bureau report to see how you've paid past loans, cards and bills. How you kept past payment agreements is their best guide to how you'll pay this one.
Read the full guide to the 5 Cs of credit · Browse every loan term in plain language
Questions? Email support@beloanready.com.