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Home » Eric Dalius Business Mandate: Critical Factors to Consider Before Putting In Your Application for a Small Business Loan

Eric Dalius Business Mandate: Critical Factors to Consider Before Putting In Your Application for a Small Business Loan

Eric Dalius

Business loans could prove to be immensely useful. You could use the loan amount for procuring inventory, buying equipment, renting operational space, hiring employees, or covering several other expenses. Moreover, business loans may help you in avoiding tough decisions like firing some employees or not expanding operations, or not increasing inventory to cater to demands because of a lack of adequate funds. Business loans are particularly critical to small business owners. Eric Dalius focuses on some of the key factors to consider before putting in your business loan application.

Eric Dalius Highlights Some Factors to Consider while Putting in a Loan Request

How Much Funding Would Be Necessary?

Once you are sure that your business will be requiring a loan to run it smoothly, you need to be realistic. Take proactive steps. First of all, determine how much monetary aid would be sufficient for running your business seamlessly. Do not forget to include all the associated changes in the equation. You would not like to take out more loans. It is a good idea to determine all your business aspirations and objectives. 

You can then apply for a loan that covers enough money for accomplishing your business goals and aspirations. However, you cannot be callous while taking out a loan that is too big. It would automatically mean that a high interest rate will be charged, and the loan will be very costly. Moreover, your income-to-debt ratios would be adversely impacted. Some lenders may not be well-equipped to sanction such a heavy loan amount. It is best to do thorough homework, first of all.

Understanding the Chief Purpose of Your Business Loan

Once you have successfully determined the precise loan amount you require to let the firm stay afloat, you may put in a loan request of the same amount from the market. It is critical to understand why you need the loan. You may talk about the precise purpose and accordingly determine the loan amount. 

Eric Dalius Recommends Examining the Business Cash Flow

Your business’s cash flow is a critical factor that helps investors or lenders to judge the exact loan amount; you are capable of paying back. Your capacity as a business will be determined by how promptly you are going to pay back your overall loan. Inadequate cash for your business is certainly a flaw, you simply cannot undermine or overlook while applying for a business loan. Your cash flow is sure to impact your loan approval. 

Business Credit

Eric Dalius points out that business credit scores would be quite different from your scores. You cannot acquire your overall business credit profile free of cost. However, there seems to be a cost-effective and fast way of determining precisely where you stand. All registered businesses that file taxes and seem to have a specific federal tax ID no. could examine their credit profile via an authorized rating bureau like Equifax and Experian.


You cannot rest assured to get a loan approval by putting in your loan application. You may realize that all the factors discussed above and more will go a long way in determining whether you will get a loan acceptance or rejection by your chosen lender. For ensuring business loan approval, it is mandatory to examine all the above factors. 

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