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The 4 Cs of Small Business Lending

Reviewed by Ty Crandall

November 15, 2023
Small Business Lending Credit Suite

Small Business Lending and the Four C’s

Looking for small business lending? Want to get money with your EIN? Then you need to know all about the four C’s.

If you are looking for money for your business than you will be happy to know you only need one
“C” to qualify.

In lending when we look to see if a client is fundable we are looking for one of the 4 “C”s.  You don’t have to have all of the 4 Cs, only 1 to secure funding.

Cash Flow is the First CSmall Business Lending Credit Suite

The first C is Cash Flow. When you have an existing business with good cash flow you can qualify for business funding.

If you do have verifiable cash flow this substantial increases your chances of getting an approval for funding.  There are many funding programs you might qualify for including Business Revenue Lending.

Collateral is the Second C

If you don’t have cash flow your business still might have Collateral, the second C.

Collateral for your business is really your business assets. You can use many things as collateral. So these include equipment, purchase orders, even account receivables.

Having Collateral greatly increases your chances of getting an approval.

If you don’t have cash flow or collateral, don’t worry you still can qualify for business funding.


Business Credit is the Third C

Lenders also look at your business Credit to qualify you.  Business Credit is our third C.

Lenders will lend you money with no personal guarantee based on your business credit profile and score.  If you have a good business credit profile you can use that as security to obtain funding.

If you don’t have business credit built now, call me so I can help you quickly build an excellent business credit score and profile.

Learn business loan secrets and get money for your business. via Credit Suite BizLoanSecNotRecCJ2

Personal Credit is the Fourth C

Maybe you are just starting a new business, and you have no business credit, cash flow, or collateral.  In this case you can still qualify for funding.   But lenders will use your personal credit to qualify you.

Personal Credit is the fourth C that lenders will look at to approve you for funding.  You can secure credit lines for up to $250,000 with as low as a 650 credit score.

These types of unsecured credit lines do not look at revenue or financials.  Your credit is all that is used to qualify you for funding.

Learn business loan secrets and get money for your business. via Credit Suite BizLoanSecNotRecCJ2

But Character is also a C

Character mainly means whether you’ve got a reputation for paying your bills. Because, to a lender or a credit issuer, you could have all the money in the world. But if you’re not known for paying your bills, then lenders, etc. will have a hard time convincing their board of directors that you deserve a loan.

So, to make this last C work for you, it’s easy. Pay your bills on time!

Learn business loan secrets and get money for your business. via Credit Suite BizLoanSecNotRecCJ2

Small Business Lending, on Balance

All you need is 1 of the 4 “C”s to qualify for much of the business financing that is available to you today. Small business lending can be yours.

About the author 

Credit Suite

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