BizSugar.com › Finance › New Jersey Entrepreneur - What Your Banker Looks For When You Ask for Credit

You’ve been hearing it for over a year now, there is a credit crisis. The news is full of stories of businesses unable to obtain credit, yet banks say that they are lending money. But to whom? The answer is to qualified borrowers. So what makes a borrower creditworthy? Lenders look at four primary items to evaluate creditworthiness which are commonly referred to as the ‘Four C’s’. The first C is ‘Cash flow’. Cash flow is the most important of the Cs since it is the primary source of debt repayment. Cash flow is assessed in both quantity and quality. Creditors look for adequate cash flow to service the debt in both good times and in bad. They want to know that you can service the debt even when business is down.