Years ago, the answer was character, your history, and background. In later years, the answer now is "ability to repay." Before looking for a loan, you need to ensure that your own credit history is in good shape. Bankers today look for the 5 "Cs":
? Capacity—the ability to repay;
? Capital—what will be invested in the business (lenders expect you to share the risk);
? Collateral—assets you have to secure the loan (or help guarantee repayment);
? Conditions—what the purpose of the loan is, start-up, line of working capital, equipment, inventory, etc.; and
? Character—what your background is, your education level, past credit history, and references.
Wherever you go to borrow money, the following Web site gives you some key points to consider: SBA Financing
