# Before You Borrow: A Small Business Owner's Guide to Stronger Loan Applications

Publisher: The Company Chronicle (thecompanychronicle.com)
Format: PDF ebook, 28 pages, English. First edition, October 2026.
Price: $7.99 USD, one-time. Instant download after payment, plus a copy emailed to the buyer.
Buy: https://thecompanychronicle.com/before-you-borrow
Checkout: https://thecompanychronicle.com/checkout?offer=ebook-before-you-borrow

## What it is
A short, practical guide that explains how lenders decide on business loans and how a small business owner can prepare a stronger, better-supported loan application. It is built around the five Cs of credit that banks, credit unions, SBA lenders and many online lenders use: character, capacity, capital, collateral and conditions.

## Who it is for
- Small business owners about to apply for a business loan, line of credit, equipment loan or SBA 7(a) loan
- Owners who were declined and want to understand what to fix
- First-time borrowers who want to walk into the lender conversation prepared
- Owners buying equipment, a location or an existing business

## What the reader learns
- How a lender reads a loan request and why "we want to grow" is not enough
- How to write a one-page request brief (business, request, budget, repayment, risks, evidence)
- Character: how to document reliability and explain a credit issue (what happened, what changed, the proof)
- Capacity: how cash flow must carry the payment, and how the debt service coverage ratio (DSCR) works
- Capital and collateral: the owner's cushion and the lender's backstop
- Conditions: putting the business and the purpose in context
- How to assemble a consistent financial package (tax returns, statements, debt schedule, forecasts)
- The red flags reviewers notice (falling margins, customer concentration, unreconciled reports, new borrowing) and how to address them
- Managing the banking relationship and choosing the right financing structure
- A 30-day preparation plan (define, reconcile, document, discuss) and an application readiness checklist
- A plain-English glossary of lending terms (amortization, balloon payment, covenant, DSCR, guarantee, lien, maturity)

## Chapters
1. Start with a clear business purpose
2. Character: build trust with evidence
3. Capacity: cash flow must carry the payment
4. Capital: keep a cushion behind the plan
5. Collateral: understand the lender's backstop
6. Conditions: put the business in context
7. Build your financial package
8. Address the red flags
9. Manage the banking relationship
10. Choose the financing structure
11. Your 30-day preparation plan
Plus: plain-English glossary and further reading (SBA, FDIC Money Smart for Small Business)

## Important
General educational information, not individualized financial, legal or tax advice. It does not promise approval of any loan; lenders decide based on their own requirements. Examples in the book are fictional.