Author: Biz India

By Parag Nevatia Would you let anyone borrow your money over a handshake? Or with the most powerful contract in writing? I bet you would think many times either way, especially if it is over a handshake. One understands every risk involved when it is their own money at stake. The concerns are the obvious – what if the person misuses it, and more importantly, what if they cannot or will not pay back on time. The fact is that you do not want to be chasing the borrower, especially not through court as it could end up costing you substantially in time and money. In any case, the risks are still possibilities, but what can you do to minimize your risk? You can analytically assess the level of risk before deciding to let someone borrow your money. Similarly, Lenders look at you under the same limelight when you apply for a business loan. So here are some things for you to consider and prepare before applying for a business loan: Personal Risks Personal History Who am I? Does my education and relative work experience reflect clearly on my Resume? What are my professional goals? Credit Score How is my track record of paying back creditors? How much debt do I carry prior to asking for more debt? Reputation Do people know me and my work ethics/capabilities? What do people have to say...