Business loans may help a business in daily operations growth plans or asset purchases in any stage of its life time. Lenders analyse a businesss ability to repay loans on parameters like age credit score financials documentations etc. Having a strong credit history stable income and proper documentation helps increase the chances of a business getting a loan. Compliance to these parameters not only increases your chances but also gets better terms on your advance. Perks such as lower interest rates flexible repayment and higher loan amounts make it easier for the businesses to not only manage the business expenses and assets but also the liabilities easily. Majority of lenders require the businesses to be established and stable hence they are likely to extend loans to those who are at least 1 to 3 years old as they are more like to repay the advances. Businesses must note that small businesses and ventures surely can avail loans from special government schemes or startup focused lenders. Why age matters in business loans? Borrowers generally of age 21 to 65 years are generally preferred by lenders to enter and sustain financial contracts. Lenders consider how many working years a borrower has to repay as a criterion. How credit score and credit history affect lending? The credit score and credit history signifies the money worthiness of a borrower. Lenders check this parameter through personal credit scores business credit report (like CIBIL CRIF High mark for businesses). A credit score of 700 is considered safe. Notably current delays and discrepancies in also induces a negative effect on the applicant. What are the other criteria for business loans? Here are few more criteria considered by lenders Business turnover and profitability Minimum turnovers (depending upon the lender) positive stability in profit margins and recently audited financial and bank statements and income tax returns (ITR). Type of business Registered businesses with legal entities are favourable due to statutory transparency on the other hand LLPs Priv. Ltd. companies or public Ltd. with proper documentations (PAN GST registration certificates etc.) can also get loans over those that don’t comply. Sole proprietors and partnerships may need to provide personal guarantees to build trust of the lenders. Current dues liabilities and collateral Lenders will also eye current liabilities in form of debt-to-income ratio to evaluate the repayment capacity of the businesses to avoid bad debt write offs. Having valuable assets like commercial properties machinery or equipments and inventory or receivables for collateral provides security to the lender hence increasing the chances of extending a loan with higher loan amounts and lower interest rates. Industry risk and market conditions Depending upon the current scope of market and risks involves the lenders may be less or more likely to put money into the industry than usual. Does proper documentations help? Proper documentations like permanent address number (PAN) Aadhar GST registration certificate business proof ITRs bank statements audited financials and P & L statements provide more security and and transparency for trust to strengthen