It is important that the professional lender remains objective, avoiding the temptation to become emotionally commited to other than providing a service. The borrower may well have been planning the project over a long period and expects an inmediate answer... however, the lender must take the time necessary to reach a lending decission, it is not in the interest of either party to get it wrong...

The decision must been taken following certain principles and structure:

  • is the borrower known and competent?
  • who introduced him?
  • to what use will the monnies be put?
  • is the amount reasonable?
  • can he repay the debt when due?
  • is any security available and cost effective?

Take a look at the diagram for more on this process.

from Alejo Lopez Casao - Blog