A freelance career in the creative arts
A freelance career in the creative arts

Start this free course now. Just create an account and sign in. Enrol and complete the course for a free statement of participation or digital badge if available.

5.2 Applying for a bank loan

Barrow (2011, p.149) refers to ‘the five Cs of credit analysis’, i.e. the factors that a bank looks at when evaluating a loan request. He recommends that when applying for a bank loan you prepare to address the points given in Table 3.

Table 3 The 5 Cs of credit analysis

A prediction of your ability to repay the loan. To do this, lenders will look at your business plan and/or financial statements and industry trends.


Lenders will scrutinise the amount by which your assets exceed your debts.


Do you appear honest and have a good credit history? If you are applying in person, dress appropriately as you would for a job interview.


What assets will you pledge to sell to pay off your loan if you fall on hard times, for example, property or business assets?


What is the current economic climate? This can have an impact as well as the amount you request.

(Barrow, 2011)

Different organisations will have different funding application processes, but if you use the advice included in these sections, and pay close attention to any criteria and instructions provided, you will improve your chances of making a successful application.

Take your learning further

Making the decision to study can be a big step, which is why you'll want a trusted University. The Open University has 50 years’ experience delivering flexible learning and 170,000 students are studying with us right now. Take a look at all Open University courses.

If you are new to University-level study, we offer two introductory routes to our qualifications. You could either choose to start with an Access module, or a module which allows you to count your previous learning towards an Open University qualification. Read our guide on Where to take your learning next for more information.

Not ready for formal University study? Then browse over 1000 free courses on OpenLearn and sign up to our newsletter to hear about new free courses as they are released.

Every year, thousands of students decide to study with The Open University. With over 120 qualifications, we’ve got the right course for you.

Request an Open University prospectus371