
How Lenders Evaluate Your Business for Credit and Capital Loans
Lenders evaluate your business loan application based on cash flow strength, creditworthiness, and operational history. Key criteria include at least $10K in monthly revenue, a FICO score above 700, a DSCR of 1.25+, and well-documented financials. They also apply the "5 C’s of Credit"—Character, Capacity, Capital, Collateral, and Conditions—to assess both your ability and likelihood to repay the loan.
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