This covers the skills, commitment and abilities of the owners and management of your business. To assess risk, we need to know the following:
- Are you in the full-time employment of the business? Small businesses run by their owners are usually more successful.
- If the business is a franchise, do the franchisors offer you training? The success rate of franchises is high.
- Do you have the necessary technical, financial and marketing skills to run your business? If you do not have these skills, do you have the support of people who do? A CV with details of your business experience could help.
- What is the net value of your personal assets as a percentage of the amount of the loan you are applying for?
- What is the minimum amount of drawings (i.e. your salary) from the business that you will need? What is the total amount of any loans that you have with financial institutions?
- How old are you?
- Do you have a succession plan for your business in the event of your retirement or death?
- Do you have enough personal insurance to cover your debt?
- Have you insured your business?