Once you have selected the bank or financial institution to approach, you must prepare for the lending institution's credit process. Every lender has its own set of guidelines, criteria, document requirements, etc., on the basis of which it decides togrant or deny a financing application. Some banks are conservative with very high thresholds for safety. Others are willing to take on more risk. Some of the latter are development banks or development financing institutions mostly owned by governments.Even these institutions follow certain procedures and impose various requirements for loan applications.Lenders have different guidelines and procedures for different types of financing facilities. For instance, a short-term loan for a relatively small amount will likely require less review and investigation than a long-term loan for a large amount. Thereare financing facilities other than traditional loans such as account receivable and inventory financing. The application for such financing facilities will have procedures and requirements different from standard loans.
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