Loan Application

A loan application is filled out in either a paper or electronic format that a financial institution, such as a bank, uses to decide whether a loan will be granted.

Credit Score

A credit score is a statistical review of a person's personal credit. In terms of a business loan, this score is used to help assess whether the applicant will be able to repay the loan. The score is based on how well the applicant has repaid credit loans in the past, such as with credit cards.

Loan Agreement

A loan agreement is signed by the person applying for the loan after the loan application has been accepted. The agreement details how much money is loaned, how long the person has to repay the loan, and the interest rate placed on the money loaned.

Interest Rate

An interest rate is the amount a borrower pays to the financial institution issuing a loan for the use of the money loaned. The interest rate is based upon the borrower's credit history and current market conditions.

Considerations

When applying for a business loan, be aware of your credit rating and financial situation. Make sure you have made provisions in your business plan to repay the loan on time.

Source:

How to Finance your Business

Business Loan Checklist | Business.gov

Business Loans Information - Business Loan ORG

Resource:

To Get a Business Loan, Know How the Bank Thinks - NYTimes.com