Karna Hoskote is our Commercial Finance Brokerage member.
He explained the process of determining whether a business is qualified to get financing from his company. Financial statements are looked at to determine if the business has a regular income stream and positive monthly cash flow. The business could also qualify based on having a good credit score of 680 or higher, have no more than 2 inquiries in the last 6 months and have low credit limits in relation to their balances. Finally, they could qualify based on collateral in the business such as equipment, investments, real estate, etc that could be sold to raise money. If the business does not qualify on any of these grounds, they are advised to enroll in business credit counseling and try again later. Keep Karna in mind when you hear someone seeking alternative funding for their businesses.