How does one qualify for a business loan?

I'm talking about experience qualifications. Education and years of work. My friend has two years in running a business and college degree and wants 15 million to expand his profitable company.

Other answer:

Andy L:
Let's keep this simple. A lender is in business to make money. They lend money based on assurance of a regular pay back plan with interest, and they don't take your word for it.
Business plans and business expansion plans are large documents that take a long time to compile.
What is the money to be used for? What is the collateral? What is the history of the borrower? How will the money cause additional profit and revenue that covers the loan payback? Some people are investors rather than lenders and buy a percentage of the business profit as a part owner. That is also about going public and issuing shares. To be able to answer about future profitability takes a detailed analysis of the customer base, the competition, the cost of product and how it is affected by higher volumes, the government regulations and overseers, taxation, employees and salaries and skills. Unless a person has a business degree, they need to hire someone to create the business plan.

Any lender will want to see that a person knows what they are doing and that their money is secure. In many cases, they also ask why it is all needed up-front and not in stages. A professional valuation of the business also helps. I have an MBA. The first meeting is for your friend to visit the bank with a relationship already and ask about what documentation is required.

The simple question – Why should they lend the money?
A borrower is often putting up everything they have including the business and its expansion and anything else of value in a way to assure loan payback.

Most likely he won't qualify for the amount he wants. That's a lot of money. He needs to consider how much profit he makes right now, and how long it would take to pay off that 15 million at today's loan rates. What product does he sell? Is it a fad item that might fade off the scene in a few years? How is he going to market his product if he expands? There are a lot of figures he needs to crunch. Have you watched Shark Tank recently? It can give you a good idea how people overvalue their business.
Casey Y:
Its all about his business plan, but that's far bigger than a business loan for a 2 year old business.

He is looking for an angel investor or venture capitalist.

Elaine M:
No bank looks at a loan if you don't have a business plan written out. He needs to get one of those done.
John D:
He could get $15 million maybe if his business is truly worth at least $50 million. If he has a million dollar business or less then he's dreaming. And if he has those kinds of numbers then he already knows the answer to this question.
Mary Contrary:
Present your business plan, including your plan to pay back the loan, to the lending institution or investor. If he hasn't crunched the numbers, including taking out a salary for himself, he will never qualify for a loan.
" …wants 15 million to expand his profitable company…"

Define "profitable". Can he offer strong Collateral? A qualified management team in place may compensate for the owner's lack of industry experience in a profitable business. A comprehensive look into the company's financial statements is required to determine eligibility of the borrower. Primarily this is about the Numbers as it defines success in a business.

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Loans amounts depend on collateral, capacity to repay, and the amount of owners equity in the business.

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