Factors We Consider
The ACCION team will help you determine whether the time is right for a small business loan for you. You and your loan officer can walk through the most critical elements of the loan application to assess your needs and financial position.
The factors we consider in determining whether the time is right for a loan are:
1. Your passion, integrity and perseverance
These values are important predictors of the direction your business will take, how quickly it can grow, and how soon you may be able to pay off your loan.
2. Your ability to repay the loan
ACCION loans must have two repayment sources, which may include any two of the following:
- Business and/or personal cash flow
- Savings
- Collateral (something you own that you value)
- Co-signer (somebody you know who has the ability and will to help you repay your loan)
- Group Guarantee (a group of entrepreneurs who all apply for credit and are willing to co-sign each other’s loans)
- Loan officers will verify business or personal income by a combination of:
- Tax returns
- Bank statements
- Financial statements when available
- Pay stubs
- Other documents
3. Credit history
The ACCION team will walk you through the most important elements of your credit report. Like a home or a savings account, your credit score is an asset. The ACCION team wants you to protect and build this asset. We can and do work with individuals who have no credit history or score.
4. Collateral
Collateral refers to something you own that you value, which can be used to help secure your loan. This could include personal or business property, equipment, or other items.
If you do not yet meet our minimum standards for securing a small business loan, ACCION will give you sound advice as to how to put things in order so that you can reapply for a loan in the future.