How do profit increases your ability of borrowing money?

[Godspower]

A flourishing business with good turnovers increases your credibility ratings and helps you to access bigger loans anytime you need them

 

[Kubiat-Abasi]

Even money lenders don't rush out loans without perusing your capacity critically. You need to have had a good credit history especially when you want to loan big amounts of money before it can be approved by reputable financial institutions.

 

[Laurentta]

Yes profit increases one's chance of borrowing money. Before banks and money lenders give out money they have to be sure that yoy are capable of paying back and they do this by checking one's profit.

 

[tyrim88]

One of the things that usually determine whether a financial institution would give out loan to a company is that they would have a good financial standing and their books must be up todate and healthy.

 

[Ronald]

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.

This statement is a valid one because even before granting you a loan for your business, investors will not hesitate to dive deep inside your financial records, and profits accumulated indicate that the business is flourishing and that is almost a guarantee that the money will be recouped

 

[Shigobad20201]

For you to be able to borrow a loan from a bank or an organisation , they will need your organisation credit report to know if your organisation has been doing well and making enough money to return if they decided to loan you the money .

 

[tyrim88]

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.

That is very true,i have experience this myself,in that the account i was making use of,it got to apoint that my bank staryed to give me offer of a loan package,because of my income in that acount.

 

[Joseph555]

The business is making profits as it is, now wants to borrow more to capitalise, expand and grow even more, which would mean more profit. Any bank wouldn't think twice to borrow such business.

 

[Agbalagbaa]

That's not a good idea, I don't really like the idea of borrowing money no matter how I am earning, if you are good at borrowing money you'll not get the best results, that's just the truth.

 

[Shigobad20201]

A flourishing business with good turnovers increases your credibility ratings and helps you to access bigger loans anytime you need them

When youmare making sales often , then you must be making profit which makes your money in the bank to keep increasing , which might be a good sign for you to get any loan you want ,

 

[Alisco]

In a business setting where it is successful and profit is increasing exponentially,I see no reason in for borrowing anything in the name of expanding your business.Since the primary aim of the business is achieved.

 

[frederick_9]

This approach seems wise to me.
The company already makes a profit, but it now wants to borrow additional money in order to invest in more capital, grow even more, and increase earnings.
Any bank would borrow such a business without second thoughts.

 

[Sotherefore]

I don't know if this is what is happening . But instead of me to consider getting a loan I rather try and manage my smaller business until it grows to the stage I am able to generate reasonable profit.

 

[Shigobad20201]

If you are to borrow money offline using your bank account to get loan from a bank , the bank need to check your credit records , If tney realise you are saving almost everytime and your money is increasing , it will be easier to get a loan .

 

[Mohammed Rashid]

Loan companies
Even banks refuse to lend money to any DICK and HARRY.
They take into account a number of factors, including the borrower's income and sources of payment, which help the lender be cautious about the amount he can lend. The borrower's income must be sufficient to cover all of his or her debt.

 

[nana kwasi1]

If you have a good customer relationship and when customers request any item just for trial, you provide a little more information about the usefulness of the specific product, this causes some customers to second-guess their level of patronage of your business, then profit will undoubtedly increase.

 

[Mighty]

Well As for me you are right and moreover Banks don't just give money out anyhow but ask for financial records before le ding big money to the company and also ask for collateral because some company's might run down and never used the money wisely

 

[Amanda_5]

think it is a wise course of action. The company already makes a profit, but it now wants to borrow additional money in order to invest in more capital, grow even more, and increase earnings. Any bank would borrow such a business without second thoughts.

 

[Shigobad20201]

With my own little knowledge , if you are a company and you also have your bank connected with your business , your profit record with them will let them know your business is doing well and you can pay if they borrow you money

 

[Setho]

The more you are making profit it means that you have the ability to make good decisions and people are going to trust you with money especially if it is for investment.