Some small business persons cannot understand why a lending institution refused to lend them money. Others have no trouble getting funds, but they are surprised to find strings attached to their loans.
Such owner-managers full to realized that banks and other lenders have to operate by certain principles just as do other types of business.
This Folio discusses the following fundamentals of borrowing:
Credit worthiness.
Kinds of loans.
Amount of money needed.
Collateral.
Loan restrictions and limitations.
The loan application.
Standards which the lender uses to evaluate the application.
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