Evaluate whether you are in a position to borrow.

Try to answer the questions below to find out whether you have what it takes to be a borrower who can be considered a good "credit-risk."

• Am I honest, with clear lines of credit, trustworthy and without any police record? Do I fulfill my obligations and honor my commitments? In other words, can I pass a bank's credit investigation? Is my financial stake in the business sufficient to influence me to honor and repay my debt?

• Do I manage my cash flow well? Do I have ready sources to repay my obligations? Do I have a written record of my cash receipts and disbursements? Do I have the documents to show (for example, income tax returns and financial statements) that my business has consistently been profitable over the past few years? Have I been dealing with a bank through which I can show the flow of my cash in the form of deposit account?

• Am I in an industry that has bright prospects for growth? Is my business job-creating, local material utilizing or dollar-generating? Is the community where my business is operating contributory to industrial growth?

• Do I have collateral without debt or lien, in the form of land, building, automotive vehicle, or equipment of value? If I have none, will someone lend me collateral? Otherwise, am I eligible for guarantee-coverage from credit guarantee institutions?

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