Pillar #1 - Revenue Stability: Consistency vs. Current Sales
A company’s sales history is often more important than its current contracts. Revenue stability demonstrates the consistency that enhances a lender’s confidence in the company’s ability to generate future revenue flows.

Pillar #2 - Importance of Cost Controls
A consistent or predictable level of expenses from year to year
demonstrates strong cost controls

Pillar #3 - Positive Credit Behaviors
Financial institutions examine both the owner’s personal and business credit behavior patterns. These behavior patterns can give insight into the fiscal habits of the company's management. Some of the evaluated items include management of bank accounts, timeliness of personal and trade credit payments, and debt management.

Pillar #4 - Management Capabilities
Sound management is one of the most important elements of a business. Lenders believe that management capability is demonstrated through its ability to balance risk, growth, financial resources, and customer care, while maximizing both material and human resources in the most efficient manner possible to operate the business. 

Pillar #5 - Strong Fiscal Management
Lenders favor companies that are committed to developing a qualified financial team to routinely monitor performance, keep a close eye on the company's financial position, and help prepare the company to meet future demands.

Pillar #5 - Strong Fiscal Management
Lenders favor companies that are committed to developing a qualified financial team to routinely monitor performance, keep a close eye on the company's financial position, and help prepare the company to meet future demands.

Pillar #6 - Reliable Financial Systems
A company's financial systems must produce timely and accurate financial reports so its managers can monitor business activity. Solid financial systems produce sales, billing, accounts payable, purchasing, payroll, project and accounting reports. Run reports daily, weekly, and/or monthly to best forecast and respond to your business needs.

Pillar #7 - Consistent Profitability
A true picture of financial stability is the company's ability to consistently generate profits. Profitable companies with two to three years of consistent revenues, costs and profitability are viewed as predictable and thus less risky.

Pillar #8 - Personal or Business Asset Base
A business either retains earnings in the company (retained earnings), or disburses its profit to its owner(s). Whichever the choice, either a company’s assets or its owners' assets increase over time from excess profits, thus demonstrating increased creditworthiness.