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there are five factors that banks look for before making a loan to you or to any business person these are called the five Cs of lending or borrowing you must be prepared to demonstrate all five when you approach a bank for a loan they wont tell you that theyre using these five Cs to make a decision but you will have to know what they are or they will simply decline your application first banks look for collateral what assets are you going to put up to cover the loan collateral is something that the bank can sell for cash fairly quickly to repay itself in case your business is not successful when I first applied for a business loan and my business was fairly successful they wanted five hundred percent collateral coverage for every dollar that I was asking them to lend me for a line of credit they wanted to prove that I could sign over to them five dollars that they could seize and sell in a bonus sale a rush sale in order to cover their money without five dollars of coverage they w
