Small Business Credit Applications/GeauxBiz Review

Who approves small businesses for lines of credit?

• Banks and online finance companies

• The government

• The President

• All of these are correct

Small businesses get approved for lines of credit if they believe the companies will have cash necessary to pay them back.

• True

• False

Banks want to make sure if they lend $ to businesses there will be how many ways for them to get repaid?

• 1 way

• 2 ways

• 3 ways

• Multiple ways

The right to take possession of collateral until a debt is repaid.

• Lien

• Collateral

• Guarantor

• Liquidity

Assets such as equipment or inventory owned by the business or by guarantors that the bank can seize & sell in the event the company can't pay their loans.

• Lien

• Collateral

• Guarantor

• Liquidity

A credit-worthy person/company who makes a legal commitment to guarantee to repay a loan if a company cannot.

• Guarantor

• Credit-worthiness

• Equifax

• Cash Instruments

A company has sufficient cash and "liquid assets" to repay all loans

• Liquidity

• Credit-worthiness

• Cash instruments

• banks

Cash, publicly traded stocks, government bonds or corporate bonds that can be turned into cash quickly.

• Cash Instruments

• Cash

• Money

• Collateral

Company owners with strong credit scores and a track record of repaying loans.

• Credit - worthiness

• Cash Instruments

• Cash

• Liquidity

Check all that apply:

3 Main Credit Bureaus are

• Equifax

• Experian

• TransUnion

• American Airlines