Horti-Business Management (2+0)

Documents required to apply for loan

• Bankers generally look for three things when considering a loan application: (1) ability to repay the loan, (2) collateral, and (3) record. The small business entrepreneur should take along three recent financial statements when applying for a loan or a line of credit : (1) a balance sheet, (2) an income statement, and (3) a cash flow statement.
  
• Collateral refers to the personal or business possessions an owner is willing to assign to the lender as a contract for debt repayment. If the borrower does not repay the debt, all collateral remits to the lender to repay the loan.