Bridging Lenders & Business

Understanding the banking world is more challenging today than ever before for business owners. And yet, to succeed in business the relationship you have with your bank is perhaps the most critical one to ensure your success. With ever changing regulations and guidelines, preparing for, and getting approved for a loan can be a daunting process!

ATW Miller Group often works collaboratively with a customer’s lender to secure not only the best financing option for them, but also to help educate the lender’s clients on what lender’s are looking for from a loan approval process. Once a loan is approved our services can follow the customer by assisting with other financial issues such as cash flow analysis, collection procedures and financial analysis.

The Five C's of Lending

It is not uncommon to hear business owners talk about being "turned down" for a loan, without understanding why. Here are The Five C's of Lending which are attributes a lending institution typically reviews and considers before approving financing:

Cash Flow:         
This simply identifies if the business has enough cash flow to pay operating expenses, debts, taxes and ideally leave enough for future growth. See Cash Flow in our glossary of terms. 
Character: The reputation of the business as illustrated by past financial performance, management and credit score. In addition, a lending institution might look at what an individual is willing to risk to ensure business success.
Capacity: The business's ability to pay the loan back in addition to operating expenses.
Collateral: These are the assets that the borrower offers to the lender to secure a loan in the event it is not repaid. The primary collateral will be the business’ assets, but if these are not sufficient, personal assets may be required as additional security.
Conditions: This refers to outside factors that indicate the ability to repay the loan, such as the market environment, industry trends, or competition.