New federal legislation also has relaxed rules about what types of companies can make business loans. It s much more competitive, so it keeps us on our toes. In fact, some experts are concerned that the lending market is so competitive that lenders are making it a little too easy to borrow money today. He has warned banks against stretching their loan restrictions. Those closer to home have some concerns, too.
Some banks have a tendency to ease the rules.
They get caught up in the competitiveness to do deals and get lax on their credit standards. The result could be a backlash against the business borrower if banks decide to call in loans they placed under the competitive pressures today. That s tough on the borrower because he or she might not be able to find someone else to take on the loan for the same terms. Your relationship with them, your management s talent, your current financial numbers and projections, and your business plan. Here s what they look for in each area.