Always an exciting moment: are the figures of my company good enough to be able to get loan?
Such a credit check is essential for a lender. In this article we explain why, and how we check the creditworthiness of each company.
What is creditworthiness?
The creditworthiness of your company expresses how suitable your company is to get a loan. That depends entirely on the financial health of your company. With every business loan you enter into payment obligations. You have to pay interest periodically (every month or every year) and often repay a part of the loan. A financially sound company can carry this kind of burden well.
4 factors with which we check your creditworthiness
With each request we assess the creditworthiness of the company. We do this on the basis of 4 factors.
- Profitability: the ratio between profit and turnover. Read more about profitability on our blog
- Solvency: the ratio between equity and the balance sheet total. Read more about solvency on our blog
- Liquidity: the extent to which your company can meet its current payment obligations. Read more about liquidity on our blog
- Refund capacity: the extent to which you can pay the monthly repayment obligations of the loan.
We make this estimate on the basis of financial data that you upload with your application:
- Overview of debits and credits from your business account. These data give us a good picture of your company’s income and expenses
- Financial statements: gives us insight into the financial history and payment obligations of your company
On every factor you get a score of 1 – 5: a score of 3 or higher is positive. With a positive score, chances are that you can get the requested loan amount. Is your score negative? Then we give you tips to improve your creditworthiness so that you are stronger in a subsequent application. This check is always free. Only when you take out the loan do you pay the closing costs: 1% of the loan amount with a maximum of € 5,000.