The money lending industry is consistently growing and is getting refined by the day. Today you have access to a wide assortment of business funding. However, moneylenders have made a niche for themselves. Most moneylenders would be taking into account the three crucial Cs while making a decision whether to approve or not to approve an application from a new client. The three Cs include Credit Rating, Collateral, and Character. However, most moneylenders would be focusing more on collateral.


Credit Rating

Your credit rating is the key factor to judge your creditworthiness. It is a significant factor in determining whether you are eligible to avail a business loan. Your credit profile and score is of great importance while you are seeking loans from money lenders. Your capacity to repay your debts is of great importance especially if you have actually defaulted. Here are some effective tips for maintaining a good credit score.

Credit Rating

  • It is mandatory to keep monitoring your credit reports from time to time so that you are well-aware of your credit score.
  • Set up an automatic payment system. This could prove to be time-saving and necessitates very little effort.
  • Do not allow creditor disputes lead to collections as then you would be getting an adverse report.
  • Consider employing the services of a professional who could help in eliminating the adverse information from your credit profile.



Usually collateral would comprise larger assets such as equipment or real estate. Most alternative lenders would be regarding collateral much above the rest. In this context, you must know that business owners who did not stand a chance to qualify normally because of poor character or bad credit score could still get an approval if he could provide the collateral. Consider real estate as an instance, it is not difficult to understand. The lender simply requires understanding and determining the property’s real value. The equity would be leveraged for advancing a loan in terms of a set percentage similar to a home loan.



Your character is of prime importance while you intend to borrow money from moneylenders. We are discussing this point simply because there are some borrowers who conveniently forget the fact that moneylenders are nothing but suppliers of money to them. You must appreciate that certain behavioral factors could be playing a pivotal role in loan approval process.

You must realize that an efficient management team would always try their best to secure a loan. If the management is ready to reveal what the actual issues are and the reason for requiring the loan including the plan precisely where the money would be used for growth or recovery, then there would be instances when collateral and credit ratings could be treated with increased flexibility.


You need to be transparent about how you would be repaying the loan and sometimes, how you intend to use the funds. When you do so, you would be having a smoother and a tension-free transaction.  Most moneylenders are happy to approve your loans once they are satisfied with the above-discussed three Cs.

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