.Character is one of the important criteria bankers look at when entrepreneurs apply for a business loan. Character is critical because it can influence other factors. The bank analyzes how you’re likely to behave if your business situation deteriorates and also examines your ability to run the business. This managerial risk is often overlooked by business owners.
What kind of things count for “character” at your local bank? From the article “Character Counts – The Value of Knowing Your Local Banker”, here are character traits banks look for, in combination with collateral, to secure a business or even personal loan: ·
- Reputation
- Community involvement
- Participation in local business organizations
- Strong roots in the community
- Good business practices
- Not just current income but potential income
- Customer relations
- Credit ratings as it applies to paying past debt (part of their character)
For more information on how to get your bank loan approved, read “12 Tips for Getting Your Bank Loan Approved”
If you think just because you have a business plan that banks will now welcome you with open arms, think again. Not easy to get a bank loan