What we look for in a borrower


Bigstone Finance | 14 May, 2019
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We assess our loan applications with the “6 C’s of Credit Assessment” to ensure our Bigstone borrowers have a successful lending experience.

Character

The way most lenders judge a borrower's character generally has to do with the directors' credit scores. This means establishing a good reputation within your industry, your suppliers and your customers.

 

Capacity

To judge the capacity of a business, we consider cash flow, the timing of the repayment, and the probability of successful repayment of the loan. Information such as: borrowing history, record of repayment, debt capacity, and other relevant financial benchmarks might be used to assess this.

Capital

How financially invested directors are in their company shows how motivated and dedicated they are. To judge this, we will look primarily at a company’s liquid assets and discount the value of these assets.  

Conditions

We will look at what business conditions have led a customer to consider financing for their asset purchase. Positive attributes include, fit-outs for new venues, continued expansion, and overall business growth investments.

Collateral

Cash flow will always be the primary source of loan repayment, but if cash suddenly becomes unavailable, lenders and investors want to understand the borrower's ability to unlock secondary sources of repayment.

Cashflow

The cash flow of the business will be looked at in form of bank statements to ensure that serviceability of the loan can be met. This will help form the terms of the loan and ensure that there will be a successful lending experience leading to business growth for the company.

Bigstone Finance can offer fast, flexible loans from $10,000 to $5,000,000 for assets and equipment for your business.

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We're on a mission to give Australian businesses better access to finance solutions to help them grow. Our blog content supports that mission through education and awareness.

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