If I get my business approved from a rating agency does that increase chances of a loan?
Yes technically banks are more comfortable offering loans to business entities with a strong financial background to avoid defaults. Getting rated from a certified rating agency may not be the only criteria but it will help your case surely.
While it’s hard to say if it will increase your chances of getting a loan, what we can say for sure is that building a good business Credit Score as well as improving your company’s profile before you apply for a loan can certainly improve your chances.
Here are some other great ways to increase the probability of getting a business loan:
Establish separate business credit via business Credit Cards. Make sure you pay your bills on time and keep your balance at 20-30% of the credit limit.
Build your personal Credit Score since that will also go a long way towards convincing banks that you’re a creditworthy person.
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Yes, you can easily get business loan if your business has good reputation. Getting rated from a certified rating agency may not be the only criteria but it will help your case surely. There are other criteria to determine the business loan. I will recommend you to try Lendingkart Finance for your business loan.