How do profit increases your ability of borrowing money?

[Khizar iqbal]

I think the more profit we have and the more Maria Building will be because when it fits we are flexed and in a league session we are able to make more profit. It would not be wrong to say that in order to make a profit, we are the big gate, the money is collected, which helps us to do more work.

 

[shakky2]

this is partially tru depending on the rules and regulations of the banks or micro finance banks to borrow from as some of them stipulates that the extent of the profit on your business is also an advantage to borrow mone

 

[Afrinish]

The success of a small business depends on its ability to continually earn profits. Profit equals a company’s revenues minus expenses. Earning a profit is important to a small business because profitability impacts whether a company can secure financing from a bank, attract investors to fund its operations and grow its business. Companies cannot remain in business without turning a profit.
Making a profit is essential for a business that desires to expand it operations. Earning a profit allows you to open other business locations, acquire another business, target other markets and expand your operations into foreign territory.

 

[Tinaconcept]

Yes this is very true the financial stability of a business matters a lot that's why booking is very important, once you have records of stable profit it increases the opportunity of the business acquiring a loan coupled with the company having collateral to use for the loan acquisition

 

[Mahnoor]

There’s a pervasive myth that no debt is good debt. Whenever we’re talking about owing money these days, it’s almost always in a negative light. You hear it every day: homeowners are underwater, the national deficit is surging, consumers are saddled by shortsighted credit card spending, the nation’s graduates are buried under student loans.

For businesses, the truth about debt is far less ominous. As the high finance set understands, not all borrowing is bad.

 

[Akinwale701]

Have you ever crossed this thing into your mind? Seems very ironic to hear right, but it is possible. Yes having the profit increases your ability to borrow money from possible investors. Debt lending allows a corporation to repay the money loaned with interest to the borrower. Debt funding for a small corporation usually involves a bank's borrowing of capital. Profitability of a business plays a major role in lending a bank money to the company.

Besides interest, the loan value and collateral of a business owner are deciding factors in the decisions on the loan. A business which cannot make profit is generally regarded as a risk of a lender's default.

What are your thoughts about this, is it still profitable ? Please share your thoughts.

It's simple and it's explainable at the same time. More profits for a company with vision and mission to expand will garner more loan as the company would want to embark on some projects for expansion both internally and externally

 

[IamDozzy]

Profit increases the credit worthiness of your organization. Most financial institutions before they give loans to financial institutions, they check their account books to ensure they are capable of paying back the loans. So it's normal for profit to increase your borrowing capacity.

 

[Oluwasayofunmi]

Concerning the question on How do profit increases your ability of borrowing money, well business that makes profit on a regular basis can borrow money in order to expand business since the business owner knows that he will be able to repay the debt from the profit he makes

 

[Alexandoy]

For a small scale business I don't think the profit has a bearing on the capacity to borrow money especially from banks. But for medium scale business that has more than 10 employees the profitability means something. However, a bank gets to notice only the past 3 years of performance. That means if you had a good profit last year it will not matter much when you are borrowing money from a bank.

 

[Philip Omotayo]

Profit should not increase the ability to borrow money. In as much as the business is making profits then, the business owner could overturn the profit into capital. Except in the case of enlargement, one could obtain a loan knowing full well that, as soon as the business moves, one would return the said loan.

 

[Shahzaib37]

Have you ever crossed this thing into your mind? Seems very ironic to hear right, but it is possible. Yes having the profit increases your ability to borrow money from possible investors. Debt lending allows a corporation to repay the money loaned with interest to the borrower. Debt funding for a small corporation usually involves a bank's borrowing of capital. Profitability of a business plays a major role in lending a bank money to the company.

Besides interest, the loan value and collateral of a business owner are deciding factors in the decisions on the loan. A business which cannot make profit is generally regarded as a risk of a lender's default.

What are your thoughts about this, is it still profitable ? Please share your thoughts.

I think profit in a business is very important and it is very necessary for everyone.for get rid from the boring money you need to increase your ability ad do more work as you can
For a good life.

 

[Ihtsham Raza]

After you have developed a cash flow analysis and determined when your business will make profit, you may decide you need additional ...

 

[Setho]

In various climes, the criteria to be able to borrow money differs and is unique. The issue of profits increasing in relation to your ability to borrow is this, if you are a business owner that wants to borrow money, recent increase in business profits increases your chances of getting it because ultimately it is an indicator that you will be able to pay the loan as at when due without hitches and without it affecting your business.

 

[KvngMurphy]

Borrowing is a business on its own and most financial institutions enjoy you borrowing because it is also a form of trade. When your business profit is increased your ability to borrow more funds is enlarged and financial institutions tends to lend you without any delay.

 

[Thosynho]

Have you ever crossed this thing into your mind? Seems very ironic to hear right, but it is possible. Yes having the profit increases your ability to borrow money from possible investors. Debt lending allows a corporation to repay the money loaned with interest to the borrower. Debt funding for a small corporation usually involves a bank's borrowing of capital. Profitability of a business plays a major role in lending a bank money to the company.

Besides interest, the loan value and collateral of a business owner are deciding factors in the decisions on the loan. A business which cannot make profit is generally regarded as a risk of a lender's default.

What are your thoughts about this, is it still profitable ? Please share your thoughts.

The higher your profit margin the more you are credit worthy. Before you could be given big loans from banks or any other financial institutions, you will need to ascertain your profit margin to be sure you have what it takes to do the repayment without hitches.

 

[Nathaniel]

The success of a small business depends on its ability to continually earn profits. Profit equals a company’s revenues minus expenses. Earning a profit is important to a small business because profitability impacts whether a company can secure financing from a bank, attract investors to fund its operations and grow its business. Companies cannot remain in business without turning a profit.

 

[Irfanali]

You can increase the profit per sale by constantly looking for ways to increase the price or reduce the cost of the product or service without lowering the standard. ... Every dollar you use to cut costs, if your sales and revenue are constant, also goes straight down the line as a net profit.

 

[Asad Ali]

Banks aren't dumb if a borrower wants to give them money. Before lending, there are several factors. One such thing is the person's loaning background and how he or she could pay back in time. They also check the business form of a person who wants to know if the company is functioning in a profit or a loss before lending and after lending the financial status of the company.

 

[Dubai]

As you make more profits it indicates that your business is growing and becoming successful. With this, you can expand your venture as it means that you can also succeed in the new branch. Lending money becomes easy since the bank knows that their money is safe in your hands. They believe that you are going to use the money well due to your track records. So, thats why its easier to take loans when you are making profits.

 

[Muhammad Umar]

By continually seeking ways to raise the price or to lower the cost of the product or service without decreasing the quality, you can increase profits per sale. ... Every dollar you reduce expenses, if you hold sales and revenues constant, also goes straight to the bottom line as net profit.