How To Qualify For An International Business Loan
If you are moving your business to another country, expect that a huge amount of capital will be needed. Few business owners have the savings to avail of international expansion opportunities. The goal of an international business loan is to fill in the gaps to help you achieve your business goals. The current economic crisis may require you to procure a loan, but not all businesses qualify for one, however.
Good credit is the most important factor affecting the approval of a business loan. This can be determined based on the financial status of your business. Lenders look at your personal or business credit score. Credit scores show your credit history summarized into a single amount. If your business credit score is high, it will be to your advantage.
Other important factors include a good business plan and down-payment. A business plan is a requirement for an international business loan. The lender wants to see if you have given the situation ample thought by being able to present them with projections and contingency plans for your business. The down-payment of at least 20% percent of the amount being loaned is usually required by lenders.
Lenders typically set a maximum loan amount for a capital international fund. The amount depends on the need, business size, and the capability for repayment of the borrower.
Like any other business other loan, international business loans require collateral. Only properties located within US territory is acceptable as collateral. The first credit or mortgage is undertaken by the lender, and other collaterals may be mandatory, such as personal guarantees. Some international business loans have maturity periods. This is the date when the loan is supposed to be paid in full, and there are loans with maturities of up to 25 years.
International capital investment made by financial institutions helps worldwide businesses develop and continue to maximize profit. Their investment may include loans which are only given for a particular period along with a certain interest rate. Loan approval depends on the credit-worthiness of the borrower, not the personal credit standing. It is imperative that when applying for a business loan, your company’s name must be stated, rather than your personal name.