Loans - Dan Croghan BUS 101 Loans When a business decided...

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Dan Croghan BUS 101 Loans When a business decided that it wants a loan from a bank there are many things it needs to do in order for the bank to approve its investment in the business. The bank needs to start off by collecting information on the business so it can make a good economic decision. The bank will need to know about assets, liabilities, bank account information, stocks and investments, and insurance policies. The bank will also need to know the business’ bill payment history. Has the business been paying all of its bills on time? Looking at this is very important because it will give the bank a good idea if the business will make its payments to the bank on time, making sure the bank is making money. Next they will look at their amount of debt. If the business has a lot of debt and has maxed out some of its debt then they could be seen as being very risky. But if they don’t have much debt then they could handle the loan and loan payments. The next thing they will look at is how long you have had credit. The longer the business has had credit the
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This note was uploaded on 08/25/2011 for the course BUS 101 taught by Professor Rollins during the Spring '08 term at Miami University.

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Loans - Dan Croghan BUS 101 Loans When a business decided...

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