Cheat Sheet for Clients

By: James Sanchez, Regent Bank Wednesday, October 10, 2018

How we look at it:

  • Debt To Service at least above a 1.15%

  • Divide the business(s) net operating income for a year by the amount of total debt to be paid off (serviced) during that year.

  • Find out what the LTV amount is and try to be 2-5% below the maximum limit.

  • Seeing a continual Revenue growth is great.

  • Having a banking relationship with the bank or starting a relationship with the bank based on loan approval. 

Secrets to being a strong candidate for growth:

Our transparency at Regent Bank includes our transparency with our clients. Below are our secrets to appear as a strong candidate for a personal or business loan:

Lenders look at a system known as the 5 C’s to determine the ability of an individual to borrow:

  1. Conditions - Your situation matters and we want to help. The more information and details your lender have on the loan you are requesting, the better they will be able to assist you.

  2. Collateral - Having a good source of collateral can help give the lender assurance. Depending on the amount being borrowed your bank will determine a percentage that you will need as collateral to secure the loan.

  3. Capacity - Your ability to repay. Lenders look at a comparison of your annual debt to your annual income. A low debt to income ratio indicates a good ability to repay. The key number is 43 percent.

  4. Capital - Preparedness is key. Depending on the nature of the loan, sometimes having the ability to give a larger down payment will help.

  5. Character - Your reputation matters. This is not your personal reputation or credit score but your credit history. Lenders typically check your credit history through one of the following credit bureaus; Equifax, TransUnion, or Experian.
Article by: James Sanchez, Regent Bank
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