Whats the number?
The borrower must know the exact amount of money he or she requires as a loan. Most lenders will need to assess whether a particular borrower has done his or her homework and this could be the starting point. Inquire about the monetary value attached with the loan.
Why does the borrower need money?
It is important that the borrower reveals details on how he or she intends to use the money. For honest activities, the borrower will be more than willing to share the purpose and requirements. Make sure you inform the borrower that he or she needs to make proper assessments before applying for a loan.
Ask the borrower about the time frame of the loan - when he or she will be able to close the loan account. A trustworthy borrower would have considered his options and will be in a position to provide a good estimation.
The question has become relevant due to the increasing numbers in reported bad debts. A lender should inquire about the borrower's future prospects and how he or she intends to generate income. A borrower who knows about the business will be in a position to give honest answers about future income flow.
Background credit check
Although your client may not like it, but make it clear that you are going to do a background check on his or her credit history before granting the loan. A reliable client will have no problem, and will further assist you to expedite the process.