Will I Qualify?
FACTORS IN LOAN EVALUATION
CREDIT REPORT - While good credit is important, we recognize that applicants may have had some credit issues in the past.
EQUITY - (owner investment) - We want to see that an applicant has something at stake in the business. For a start-up, this may be in the form of cash or equipment or other assets already owned by the business before the loan.
The above is not intended to be an exhaustive description of our underwriting process but provides an overview of some of the key factors we review. In all cases, a well written business plan, accompanied by complete and accurate financial statements will provide your best opportunity for funding. CEF does not discriminate on the basis of race, color, religion, gender, marital status, disability, age, national origin or sexual orientation in services or accommodations offered or provided to our employees, clients or guests.
CEF reviews all aspects of your small business loan request in our decision making process. Some of the typical factors we consider when evaluating a loan request include:
BUSINESS INDUSTRY CLIMATE - Some businesses and industries are more difficult to finance as a result of economic or specific industry conditions.
CASH FLOW / PROFITABILITY - As this is the primary source for repayment of a loan, we review financial statements in order to determine cash flow and profitability. We also look at the personal cash flow and debt service situation of the primary business owner which might include outside income.
COLLATERAL – This demonstrates that the owner believes in the business by putting up something of value to ensure payment. It is considered a secondary source of repayment. We typically require collateral. However, the size of the loan and other factors may determine the required amount of collateral.