Business Financing -

Business Financing and Planning
Overall Assessment of Business to Obtain Financing

For more information about qualifying for business financing, see Knowing the Lender's Questions & How They Rate You for the Money
Please enter the information highlighted in yellow.



		Prepared by:
Assess point values to each category & post them in right-hand column.
				Points

1. How long has business been in existence?
	Over 5 years:		10 points
	2 - 5 years:		5 points
	Less than 2 years:		3 points
	New Business:		0 points

2. Does the business have other established banking or funding source relationships?
	Banking:		10 points
	Other sources:		5 points
	No current sources:		0 points

3. Rate current general credit standing with vendors:
	Excellent:		10 points
	Good:		5 points
	Average:		3 points
	Poor or not rated:		0 points

4. Does business have a current Dunn and Bradstreet rating:
	Excellent:		10 points
	Good:		5 points
	Average:		3 points
	Poor:		0 points

5. What is business purpose for obtaining financing?
	Expansion - Growth Capital:		10 points
	Operations - Working Capital:		3 points
	Business Start-up - Risk Capital:		0 points

6. Business risk rating:
	Growing, steady income assured:		10 points
	Growing income likely:		5 points
	Steady income likely:		3 points
	Declining income:		0 points

7. What is the company's prestige?
	Outstanding reputation with long solid record of operation		10 points
	Satisfactory reputation with well established environment		5 points
	Average reputation and operation:		3 points
	Recent start-up - no history:		0 points

8. Employee's perception of company:
	Aggressive with strong employee benefits:		10 points
	Personable with average benefits:		5 points
	Average with moderate benefits:		3 points
	Provides minimum benefits:		0 points

9. Business desirability rating:
	"Professional", licensed business:		10 points
	Prestigious business in respected environment		5 points
	Respected buisness in satisfactory environment		3 points
	"No status" business - dirty or rough work		0 points

10. Business profitability history and projection:
	Excellent performance expected:		10 points
	Strong trend likely:		5 points
	Steady trend possible:		3 points
	Inconsistent or possible losses:		0 points

11. Company growth:
	Bus. has shown dynamic growth:		10 points
	Bus. has shown steady, solid growth:		5 points
	Bus. has remained relatively constant:		3 points
	Bus. has shown decline:		0 points

12. How would business' key employees be evaluated by lender in relation to competence, experience, knowledge, and company loyalty?
	Excellent:		10 points
	Average:		5 points
	Adequate:		3 points
	Below Average:		0 points

13. Has lender been provided a formal business plan?
	Formal - written:		10 points
	Informal - verbal:		3 points
	None:		0 points

14. Does business provide adequate & proper insurance?
	Excellent in all important areas:		10 points
	Adequate in key areas:		5 points
	Average for business' industry:		3 points
	Little or none:		0 points

15. Competitive rating:
	Little competition in industry:		10 points
	Normal competition:		5 points
	Highly competitive in stable market:		3 points
	Highly competitive in unstable market:		0 points

16. Rate the business' internal accounting controls?
	Excellent in most areas:		10 points
	Formal in most areas:		5 points
	Informal in some areas:		3 points
	Little or none:		0 points

17. Business industry or market:
	Dynamic industy:		10 points
	Industry outpacing inflation:		5 points
	Industry stable:		3 points
	Industry declining:		0 points

18. How does the current ratio compare with industry?
	Well above average:		10 points
	Above average:		5 points
	Average:		3 points
	Below average:		0 points

19. How does the net income % compare with industry?
	Well above average:		10 points
	Above average:		5 points
	Average:		3 points
	Below average:		0 points

20. Compare the business with industry competitors:
	Excellent:		10 points
	Good:		5 points
	Fair:		3 points
	Poor:		0 points

		Total Points:

Summary

Ability to		Point		Borrower's
Obtain Financing		Total		Points
	Excellent	150-200
	Good	80-149
	Average	30-79
	Fair	0-29


Recommendation Analysis

Recommendations for Improvements:		Current Points	Target Points
			5
			5
			5
			5
			3
			5
			5
			5
			5
			5
			5
			5
			3
			5
			5
			5
			5
			5
			5
			5

	Total:


Conclusions:





Credit Risk Assessment Chart



Rate the numbered items in each category with a 40, 60, 80, or 100 scaled rating. This rating is multiplied by the weight shown to calculate the total score for each item. The summary scores for each group are summed to figure the total score.
				Total
I. Capital:		Rating	X Weight	= Score
	1. Financial Strength		0.10
	2. Collateral Availability		0.10
	3. Current Ratio Strength		0.05
	Capital Summary Score:

				Total
II. Condition:		Rating	X Weight	= Score
	4. Industry Conditions		0.10
	5. Economic Conditions		0.10
	6. Government Regulations		0.05
	Condition Summary Score:

				Total
III. Character:		Rating	X Weight	= Score
	7. Management Experience & Education		0.05
	8. Reputation - Market		0.05
	9. Reputation - Employees		0.05
	10. Loan Record - Past		0.05
	11. Vendor - Track Record		0.05
	Character Summary Score:

				Total
IV. Capacity:		Rating	X Weight	= Score
	12. History of Profits		0.10
	13. Profits - Future		0.10
	14. Sales Volume Increase		0.05
	Capacity Summary Score:

Summary Score Analysis
		I	II	III	IV
Score Indicator:		Capital	Condition	Character	Capacity
Total Type of Credit Risk
100 Excellent
80 Fair
70 Possible
60 Doubtful
50 Inferior
40 Poor
30 Unallowable

Based on total score, overall credit risk rating is:


Analysis & Recommendations by Characteristics

Recommendations for Improvements		Item	Current	Target
		Number	Score	Score
Improvement for Capital		1		8
Improvement for Capital		2		8
Improvement for Capital		3		3
Improvement for Condition		4		8
Improvement for Condition		5		8
Improvement for Condition		6		3
Improvement for Character		7		3
Improvement for Character		8		3
Improvement for Character		9		3
Improvement for Character		10		3
Improvement for Character		11		3
Improvement for Capacity		12		8
Improvement for Capacity		13		8
Improvement for Capacity		14		3

		Total:

Automatic recalculation

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