The historical operating performance of a company is a key factor in any credit decision. Lenders look for stable, upward trends in revenues, earnings and cash flow. Dramatic increases, as well as deteriorating or erratic trends, may raise questions. They prefer audited or reviewed financing statements with footnotes as opposed to tax returns. Balance sheet strength.
Lenders look for strong equity.
Ability to repay. Lenders must feel confident that a borrower can service the proposed debt and maintain business operations with current cash flow. For short-term loans, this is a top priority. Prepare a five-year projection with balance sheets, income statements and cash flow statements for potential lenders. Your credit history.