Purpose In light of the company’s financial plan and strategies, this report seeks to present information on areas of interest for lenders when considering loan applications from various institutions. The significance of this is to polish the organization to stand a chance of qualifying for loan consideration. The second purpose of this report is to act as a reminder on some of the reasons for obtaining financing. Summary The covered reasons for obtaining finance in this article are to finance working capital of an organization, to support an organization growth or business expansion and to facilitate capital expenditures. Other areas covered are areas of consideration by lenders. They are credit assessment, business assessment and capacity to pay back the loaned amount. Discussion In light of the current plan and long-term strategies of the organization, it is clear that more funds are needed. The organization’s internal source provides inadequate funds to completely facilitate the rolled out plans. Borrowing from external sources is the only sure way of funding the company’s projects. Due to this reason, the company management needs to understand the perspective of the lender in order to successfully apply for funding. In addition, the management should re-examine their options by setting straight needs for funding. The two articles, upon which the two concepts heavily rely, provide great insights into the matter at hand. They directly talk about how the company should go about borrowing a loan. Therefore, their context exactly fit into the company’s context and thus the reason for their selection. Lenders’ considerations Lending institutions can be commercial banks, hedge funds, Federal Reserve institutions, the World Bank and International Monetary fund. The lending process begins with an application made by a borrower to a lender. The lending institution, upon receiving the application, conducts an approval process to ascertain qualification of the borrower for loan consideration. The main areas of concern are credit assessment, business assessment and capacity to pay. In credit assessment, the lending institution is interested in determining whether the borrowing entity has guarantors and if yes, whether the guarantors meet credit eligibility requirements, the current debt level of both the borrower and the guarantor. A guarantor is the party to loan contract who is responsible for the full payment of the loan the amount in the event of failure on the part of the borrower. This information is important to provide an assurance to the lender that the lent amount will be recovered according to the terms of the contract. The business assessment process involves ascertaining the feasibility of a project, whether the borrower is the manager of the project and whether the terms of the loan suit the purpose for which it is sought. This process helps the lender to avoid making investments in impractical projects. It also has connection with the assurance of recovering the lent amount. During ability to pay the assessment, the lending institutions are interested in ascertaining whether the borrower will be able to pay back the loan by analyzing business financial information (“FHA Loan requirements: important FHA guidelines” par. 1-46). The lending institution would be looking for the financial status and credit history of