How is your business loan proposal assessed?

February 28, 2017

Most financiers go through the following steps in assessing business customers’ lending proposals:

  1. Opportunity assessment – business development prospecting, identify lending opportunities.
  2. Preliminary analysis - preliminary screening to ensure customer meets credit policy parameters, identify underlying borrowing cause.
  3. Repayment source analysis - industry and business risk analysis, financial statement analysis, cash flow analysis & projections.
  4. Loan packaging - summary & recommendation, loan structuring and negotiation.

The biggest driver of a customer’s risk rating (and therefore pricing) is the assessment of management’s experience and capabilities.

It is important that a customer demonstrates their competency and knowledge through relevant industry exposure and a strong track record of managing businesses particularly through different economic cycles.

Quadrant assists businesses in strengthening their banking relationships and help you to fast track loan applications.