Tip Number 5 to Impress your Lender: Show that your Business can Pay the Interest Plus the Principal

The possibility of getting approved for loan is greater when you show confident that your business has the capability of paying the interest. However, lenders these days are becoming more cynical. They are not only looking at how the business can generate enough cash to handle the interest but also if it can pay back the principal amount.

The tip here is, show to your lender that you are able to handle the total debt coverage. You must ensure the lender that you can not only pay the interest but the principal as well. It is not enough to say that your business can handle the interest because the lenders are more concern with the principal amount than the interest. Boost out your sales and your future prospects and be confident to show that your business has the capability to generate sales which can cover the total debt. It is also a plus if you can show that aside from the capability of paying the total debt, there is also a profit generated to keep the business rolling.

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