How do profit increases your ability of borrowing money?

[Shigobad20201]

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.

Your banks that normally gives you loan always your credit report and keno I your business is making profit so that they can give out loan to you when you need it but if your business is not making progress , then it wil be hard for you to get a loan.

 

[Jonaville1]

I think it is a good way to go. 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.

This all falls back on reputation and that is why it is very advisable to have a good reputation anyway so that you are going to benefit from a lot of opportunities