Loan Application Evaluation

Community Capital performs:

1. Credit Assessment:

  • Do all guarantors meet our credit eligibility requirements?
  • What is the applicants and guarantors current level of debt and debt to income ratio?
  • Past and present use of credit

2. The Business Assessment

  • Is the business or business idea feasible, practical and possible?
  • Is the applicant/business owner the effective owner, manager and decision maker on a real and continuing basis?
  • Do you, the business owner, have the experience and knowledge to run the business? Are you committed to the business?
  • Does our loan product fit the needs of the business?

3. The “Ability to Pay” Assessment

We look at whether your personal financial information and business financial information demonstrate that you will be able to pay back the loan.  We get this information from your loan application and the accompanying documents as well as discussions between you and our staff.

 

Additional information:

  • Existing Businesses need to demonstrate the financial ability to repay, commitment and motivation to improve the business, good payment history with other creditors, landlords, suppliers, etc. and collateral available to secure the loan (collateral is valued at liquidation or trade-in prices)
  • Start-Up Businesses should be able to prove industry experience and personal equity investment of between 10-50%, an alternative income source or a well thought out plan of how to sustain themselves while the business is in startup mode and not yet earning sufficient profits, a well thought out  business plan and reasonable financial projections
  • Community Capital is not a bank. We do utilize basic lending guidelines when reviewing a loan application but the difference is that we are more flexible in how we apply these guidelines. We review all aspects of your request in our decision making process. Our loans are underwritten locally and decisions are made by our loan committee comprised of local lenders as well as seasoned business owners.
  • If a loan is approved, the loan committee generally opts to pay vendors directly wherever feasible

The above is not intended to be an exhaustive description of our underwriting process but might provide you with an idea of some of the factors we review. In all cases a well written business plan, accompanied by complete and accurate financial statements will provide your best opportunity for funding.

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