What do conventional lenders look for when considering a business loan?
What are some of the things conventional lenders (e.g. banks, credit unions) look for when considering a loan application?
- What is considered a "good" credit score?
- What is an acceptable debt-to-income ratio?
- What other documentation do lenders look for?
- 680 and above is considered a good credit score but 720 and above is excellent and will help you get better rates.
- Not sure about the debt to credit ratio for conventional but I know most of the programs that are unconventional want it under 30-35%
- Usually, they'll want to see the last 2 years tax returns and up-to-date P&L's