- When a small business applies for a business loan, a bank or other lender follows a certain protocol when evaluating the application. One thing the bank uses is the 5 C’s of credit analysis to evaluate the application for the loan. Bankers evaluate the small business in the context of the 5 C’s in order to allocate their limited funds.
- When you open a business, one of your first tasks should be to open a business bank account. It is important to keep your personal and business finances separate. It’s not enough to just keep separate records. You should actually keep the money physically separate in different bank accounts, one set up as a business account.
- Small businesses need access to short-term business loans for working capital and other needs that can be resolved within one year.
Originally posted on TheBalance.com