June 16, 2008
Must-haves for Commercial Loans
The approval or transfer of the loan amount to your account is not the end of the tension pertaining to commercial loans. There are few things every essential for prompt repayment of these loans to prevent mounting of interest on the principal amount. Some of them are:
1. Steady Cash Flow - When borrowing an amount, you should be sure of the source to repay the same.
2. Character - The borrower or the guarantor should have a decent credit history which reflects his or her willingness to repay the loan as it has been done in past also.
3. Security - Borrower should have a decent security that could protect them in case of default. Generally, a collateral is sufficient and hence treated as a second source of cash flow.
Filed by admin at 12:08 pm under finance