Do you want to get some financing for your new product, invention, or company? Lets take a look at what some of the standards seem to be, based on the Venture Capitalism’s three c’s for loans. This article is essencially geared towards taking your business and expanding or improving it by taking out loans.

And of course those three c’s would be cash, credit, and collateral.

1. Cash - It is important for you to be an investor in your own project. If you are throwing down a good portion, say 20% for example, then you are laying the groundwork of good faith. If people know that the person they are investing in cares enough to lay down his own money, they are more likely to invest.
2. Credit - Even though as they say on the investing commercials ‘past performance does not guarantee future results’ it can give you a clue. If someone’s FICO score is awful, there is a good chance that they do not know how to manage their funds. Then on the other hand that person could be great from then on out.
3. Collateral – What happens if you spend the money expanding the business, only to find out that your idea was a flop. The investors are not going to be particularly happy about that. With good cause too, you could have just lost all of their money without anything to show for it. By having collateral, you are saying ‘If I can’t make payments, I’ll back it up with my house’ Could be risky for you, but if it means getting your loans you have to be able to take that risk.

These c’s can be basic rules of thumb for any type of loans. With that, you are one step closer to getting your business set for growth!