May 13, 2026

Best Small Business Loans In Ohio 2025: Complete Guide (2025)

As a small business owner in Ohio, navigating the landscape of financing options can be daunting, especially as we approach 2025. Understanding the best small business loans available, their terms, eligibility criteria, and potential risks can empower you to make informed decisions. This comprehensive guide will equip you with the knowledge to secure the right funding for your business while considering the unique market trends and requirements specific to Ohio.

What Are the Best Small Business Loans Available in Ohio for 2025?

In Ohio, the best small business loans for 2025 include a variety of options tailored to different business needs, such as traditional bank loans, SBA loans, and online lending platforms, each offering unique advantages. You can also review our loan calculators for related guidance.

Overview of Loan Options

Small business loans can be categorized into several types, including term loans, lines of credit, and equipment financing. Each option serves distinct purposes; for example, term loans are typically used for significant investments, while lines of credit are ideal for managing cash flow fluctuations. Understanding these options is crucial for selecting the right loan that aligns with your business goals.

Types of Lenders

Borrowers in Ohio can choose from various lenders, including traditional banks, credit unions, and alternative online lenders. Traditional banks often offer competitive interest rates but may require extensive documentation and have stricter eligibility criteria. In contrast, online lenders can provide faster funding with more lenient requirements, though they may charge higher interest rates. You can also review our mortgage options for related guidance.

Market Trends in 2025

The lending landscape in Ohio is expected to evolve in 2025, with an increasing emphasis on digital solutions and alternative financing options. Businesses may find more flexibility as lenders adapt to changing economic conditions and technological advancements, allowing for faster approvals and tailored loan products. For official educational guidance, review Consumer Financial Protection Bureau.

How Do I Determine My Eligibility for Small Business Loans in Ohio?

Eligibility for small business loans in Ohio typically depends on factors such as your credit score, business revenue, and the type of loan you are applying for. Understanding these criteria is essential for preparing a successful application. For official educational guidance, review official U.S. loan guidance.

Basic Eligibility Requirements

Most lenders will evaluate your business’s creditworthiness, which includes assessing your personal and business credit scores. Generally, a credit score of 680 or higher is preferred for traditional loans, while alternative lenders may accept scores as low as 500. Additionally, lenders will look at your business’s revenue, years in operation, and industry to gauge your ability to repay the loan.

Documentation Needed

When applying for a small business loan, you will need to provide several documents, including tax returns, financial statements, a business plan, and proof of ownership. It’s vital to have these documents organized and readily available, as they play a crucial role in the lender’s decision-making process.

Common Pitfalls to Avoid

Many borrowers make the mistake of applying for loans without understanding their financial needs or the terms of the loan. It’s essential to avoid rushing into a decision without comparing offers or fully reading the fine print. Additionally, failing to maintain accurate financial records can hinder your application process and negatively affect your perceived creditworthiness.

What Types of Small Business Loans Are Offered in Ohio?

Ohio offers a variety of small business loans designed to meet different needs, including term loans, SBA loans, and lines of credit. Each type serves a specific purpose and comes with distinct terms and conditions.

Term Loans

Term loans are typically used for significant business expenses, such as purchasing equipment or real estate. These loans generally have fixed interest rates and repayment terms ranging from one to five years. They provide a lump sum of capital upfront, allowing businesses to invest in growth opportunities while paying off the loan over time.

SBA Loans

SBA loans, backed by the Small Business Administration, are known for their favorable terms, including lower down payments and longer repayment periods. They are ideal for businesses with strong credit profiles but may take longer to process due to the extensive paperwork required. Understanding the specific requirements for SBA loans can help you determine if this option suits your business.

Lines of Credit

A line of credit offers businesses flexible access to funds, allowing them to withdraw money as needed, up to a predetermined limit. This type of financing is particularly useful for managing cash flow or covering unexpected expenses. Interest is typically charged only on the amount drawn, making it a cost-effective option for many small businesses.

What Are the Average APR Rates for Small Business Loans in Ohio?

Average APR rates for small business loans in Ohio can vary significantly based on the lender, loan type, and the borrower’s credit profile, typically ranging from 6% to 30% for various loan products.

Comparing APRs Across Lenders

When comparing APRs, it’s essential to consider not just the base interest rate but also additional fees and loan features. A lower interest rate may seem attractive, but hidden fees can significantly increase the overall cost of the loan. Creating a comparison table of potential loans can help you visualize differences in total costs over the loan term.

Factors Affecting APR

Several factors can influence the APR offered to you, including your credit score, the length of your business’s operating history, and your overall financial health. Lenders will assess these factors to determine the level of risk associated with your loan application, which in turn affects the interest rate they are willing to offer.

How to Negotiate Better Rates

Negotiating better rates often requires demonstrating a strong financial history and a solid business plan. Presenting a clear picture of your business’s cash flow and future revenue projections can provide lenders with confidence in your ability to repay. Additionally, having multiple loan offers can strengthen your negotiating position when discussing terms with lenders.

What Fees Should I Expect When Applying for Small Business Loans?

When applying for small business loans, borrowers should anticipate various fees, including application fees, origination fees, and potential prepayment penalties. Understanding these fees is crucial for evaluating the total cost of the loan.

Common Fees Explained

Common fees associated with small business loans include application fees, which cover the costs of processing your loan request, and origination fees, charged by lenders for setting up the loan. These fees can range from 1% to 5% of the loan amount and should be factored into your budget when considering a loan.

Hidden Fees to Watch Out For

Hidden fees can significantly impact the total cost of borrowing. Some lenders might charge fees for late payments, early repayment, or even account maintenance. Always read the loan agreement carefully and ask lenders to clarify any terms that seem ambiguous to avoid unexpected costs.

Understanding Origination Fees

Origination fees are upfront charges that lenders apply to cover their administrative costs. They are typically calculated as a percentage of the loan amount. Understanding how these fees work can help you compare loans more effectively and make an informed decision about which loan is the most affordable in the long run.

How Do Repayment Terms Vary Among Small Business Loans?

Repayment terms for small business loans can vary widely, depending on the type of loan, lender, and the borrower’s financial situation. Familiarizing yourself with these terms is essential for managing your business’s cash flow effectively.

Typical Repayment Periods

Repayment periods for small business loans can range from a few months to several years. Term loans typically have repayment terms of one to five years, while lines of credit may require monthly payments based on the amount used. Understanding these timelines helps borrowers plan accordingly for their cash flow needs.

Monthly Payment Structures

Monthly payment structures can differ based on the loan type and lender’s policies. Some loans might offer fixed monthly payments, ensuring your payment amount remains consistent, while others may have variable payments based on interest rates. It’s important to understand how these structures affect your budgeting and financial planning.

Flexibility in Repayment Plans

Some lenders offer flexibility in repayment plans, allowing borrowers to adjust their payment schedule based on their business cash flow. This flexibility can be beneficial during slower business periods, but borrowers should carefully review the terms to understand any potential costs or penalties associated with changes to the repayment plan.

What Risks Should I Consider Before Taking Out a Small Business Loan?

Before taking out a small business loan, it’s crucial to understand the potential risks involved, including the possibility of default, the impact of market conditions, and the need to manage cash flow effectively.

Understanding Loan Default Risks

Defaulting on a business loan can have severe consequences, including damage to your credit score and potential legal action from lenders. It’s essential to assess your ability to repay the loan before borrowing, as this will help you avoid long-term financial issues that could jeopardize your business.

Impact of Market Conditions

Market conditions, such as economic downturns or industry-specific challenges, can affect your business’s revenue, making it difficult to meet loan obligations. Staying informed about market trends and having a contingency plan can help businesses navigate economic fluctuations and minimize risks associated with borrowing.

Managing Cash Flow Risks

Effective cash flow management is vital for ensuring that you can meet your loan payments. Implementing robust financial tracking systems and regularly reviewing your cash flow can help identify potential shortfalls in advance, allowing you to take corrective action before they impact your ability to repay the loan.

How Can I Protect Myself as a Borrower in Ohio?

Protecting yourself as a borrower involves understanding your rights, the importance of loan agreements, and being aware of predatory lending practices that can exploit vulnerable borrowers.

Understanding Borrower Rights

Borrowers in Ohio have certain rights that protect them from unfair lending practices. Familiarizing yourself with these rights can help you advocate for yourself during the loan application process. For example, you have the right to receive clear information about the terms of the loan and the associated costs.

Importance of Loan Agreements

A well-drafted loan agreement should clearly outline the terms, conditions, and responsibilities of both the lender and borrower. It’s essential to review this document carefully before signing, ensuring that you fully understand your obligations and any penalties for non-compliance. Seeking legal advice can also provide clarity and protection.

Avoiding Predatory Lending Practices

Predatory lending practices can take many forms, including exorbitant interest rates, hidden fees, and aggressive sales tactics. To protect yourself, always conduct thorough research on lenders and read reviews from other borrowers. If a deal seems too good to be true, it probably is—trust your instincts and seek alternative options.

How Does My Credit Score Impact My Loan Options?

Your credit score significantly influences the loan options available to you in Ohio, affecting the interest rates and terms you may qualify for. Understanding how your credit score works is crucial for making informed borrowing decisions.

Credit Score Ranges and Loan Eligibility

Credit scores typically range from 300 to 850, with higher scores indicating better creditworthiness. Most lenders consider a score above 680 to be favorable, while those with scores below 600 may face challenges in securing loans. Understanding where you stand can help you determine the best loan options available to you.

Improving Your Credit Score

If your credit score is not where you want it to be, there are steps you can take to improve it before applying for a loan. Paying off outstanding debts, making timely payments, and reducing your credit utilization ratio can all contribute to a higher score. Consider checking your credit report for errors and addressing them as necessary to improve your overall creditworthiness.

Alternatives for Low Credit Scores

For borrowers with low credit scores, alternative financing options may be available, including peer-to-peer lending and microloans. While these options may come with higher interest rates, they can provide the necessary capital for businesses that may struggle to qualify for traditional loans. Exploring these alternatives can help you find the funding you need to grow your business.

What Are the Top Lenders for Small Business Loans in Ohio?

Ohio boasts a diverse range of lenders for small business loans, including large banks, local credit unions, and online lending platforms. Each type of lender offers different advantages and should be evaluated based on your specific needs.

Big Banks vs. Local Credit Unions

Big banks often provide competitive rates and a broad range of financial products, but they may have stricter eligibility criteria and longer processing times. On the other hand, local credit unions tend to offer more personalized service and may be more flexible in their lending practices, making them a viable option for some borrowers.

Online Lenders vs. Traditional Lenders

Online lenders have gained popularity due to their convenience and speed of funding. They often have less rigorous eligibility requirements compared to traditional lenders, allowing more businesses to access funding. However, borrowers should be cautious of potentially higher interest rates and fees associated with online loans.

Comparing Lender Reviews

Researching lender reviews can provide valuable insights into the experiences of other borrowers. Look for feedback on customer service, loan processing times, and overall satisfaction. Websites that aggregate reviews can help you find reputable lenders and avoid those with poor track records.

How Do I Compare Different Small Business Loan Offers?

Comparing different small business loan offers involves evaluating key factors such as interest rates, fees, repayment terms, and lender reputation. A thorough comparison can help you make the best financial decision for your business.

Key Factors to Compare

When comparing loan offers, consider factors such as the total cost of the loan, including interest rates and fees, as well as repayment flexibility and terms. Additionally, assess the lender’s customer service and responsiveness, as these aspects can impact your overall borrowing experience.

Using Loan Comparison Tools

Utilizing loan comparison tools can simplify the process of evaluating multiple offers. These tools allow you to input your loan details and receive side-by-side comparisons of different lenders’ rates, terms, and fees. This can save you time and help you identify the most favorable loan options quickly.

Evaluating Total Loan Costs

To effectively compare loans, calculate the total loan costs, including all associated fees and interest payments, over the loan term. This comprehensive view will help you assess which loan is the most affordable and aligns with your business’s financial situation.

Which Small Business Loans Offer the Best Terms in 2025?

In 2025, small business loans with the best terms will likely include those from reputable lenders that offer low APRs, flexible repayment options, and minimal fees. These loans can significantly benefit your business in the long run.

Top Picks Based on APR

Loans with the lowest APRs are often found through traditional banks and credit unions, which may offer rates as low as 6% for qualified borrowers. However, it is essential to balance interest rates with other factors, such as fees and repayment terms, before making a decision.

Best for Flexibility

Lines of credit tend to offer the most flexibility, allowing business owners to draw funds as needed and repay them on a schedule that suits their cash flow. This flexibility can be particularly beneficial for businesses with fluctuating revenue streams.

Best for Quick Funding

If speed is a priority, online lenders often provide the quickest funding options, with some offering same-day approvals. While these loans may come with higher interest rates, they can be an effective solution for businesses needing immediate capital.

What Are the Challenges of Securing a Small Business Loan in Ohio?

Securing a small business loan in Ohio can present various challenges, including navigating the application process, meeting strict eligibility criteria, and overcoming rejection from lenders. Understanding these challenges can help you prepare effectively.

Common Rejection Reasons

Common reasons for loan rejection include low credit scores, inadequate cash flow, insufficient collateral, and incomplete applications. Being aware of these factors can help you address potential weaknesses in your application before submitting it to lenders.

Navigating the Application Process

The loan application process can be complex and time-consuming, often requiring detailed financial documentation and a comprehensive business plan. To streamline the process, consider organizing your financial records ahead of time and ensuring that your business plan clearly outlines your goals and strategies.

Tips for Strengthening Your Application

To strengthen your application, focus on providing clear and accurate financial documentation, including profit and loss statements, tax returns, and cash flow projections. Additionally, building relationships with lenders and demonstrating a strong understanding of your business can enhance your credibility and increase your chances of approval.

How Can I Improve My Chances of Approval for a Small Business Loan?

Improving your chances of approval for a small business loan involves preparing a strong application, building a solid business plan, and maintaining good financial health. These steps can significantly enhance your appeal to lenders.

Building a Strong Business Plan

A well-structured business plan outlines your business goals, target market, competitive analysis, and financial projections. A convincing business plan not only helps you clarify your objectives but also demonstrates to lenders that you have a clear strategy for success and repayment.

Gathering Strong Financial Documentation

Having robust financial documentation readily available can streamline the application process and instill confidence in lenders. This includes providing accurate income statements, balance sheets, and cash flow statements, which collectively showcase your business’s financial health.

Leveraging Business Relationships

Building relationships with local banks, credit unions, and other financial institutions can improve your chances of securing a loan. Networking within your industry and participating in community events can help you establish connections that may prove beneficial when seeking financing.

What Is the Impact of Economic Factors on Small Business Loans in 2025?

Economic factors, such as inflation, interest rates, and local economic conditions, play a significant role in shaping the small business lending landscape in 2025. Understanding these factors can help you anticipate challenges and opportunities.

Inflation Effects

Inflation can impact the cost of borrowing and the purchasing power of your business. As inflation rises, lenders may increase interest rates to mitigate their risk, leading to higher borrowing costs for small businesses. Staying informed about inflation trends can help you time your borrowing more effectively.

Interest Rate Trends

Interest rates are influenced by various economic factors, and monitoring trends can help you make informed borrowing decisions. If rates are expected to rise, securing a loan sooner rather than later may be advantageous. Conversely, if rates are declining, you may benefit from waiting to apply.

Local Economic Conditions

Local economic conditions, including job growth, consumer spending, and industry performance, can directly affect your business’s revenue and, consequently, your ability to secure a loan. Understanding the economic landscape in Ohio can help you gauge potential risks and opportunities related to your business financing.

How Do Seasonal Businesses Navigate Loan Options in Ohio?

Seasonal businesses in Ohio often face unique challenges when seeking loans, as their revenue can fluctuate significantly throughout the year. Understanding the best loan options for these businesses is crucial for maintaining cash flow.

Understanding Seasonal Cash Flow

Seasonal businesses experience variations in income based on the time of year, making cash flow management particularly challenging. Understanding your business’s seasonal patterns can help you forecast your financial needs and identify the best times to apply for loans or lines of credit.

Best Loan Options for Seasonal Businesses

For seasonal businesses, lines of credit can provide the flexibility needed to manage cash flow during slower months. These loans allow for quick access to funds when revenue dips and can be repaid as income increases during peak seasons.

Alternatives to Traditional Loans

Alternative financing options, such as invoice financing or merchant cash advances, can also be effective for seasonal businesses. These options provide quick access to capital based on outstanding invoices or future sales, allowing businesses to bridge cash flow gaps without traditional long-term loans.

What Unique Financing Options Exist for Minority-Owned Businesses?

Minority-owned businesses in Ohio may have access to unique financing options, including government grants and specialized lenders aimed at supporting diverse entrepreneurs. Understanding these options can help minority business owners secure the funding they need.

Government Grants and Programs

Various government grants and programs are designed to support minority-owned businesses. These funds often do not require repayment, making them an attractive option for entrepreneurs looking to grow without incurring debt. Researching local, state, and federal programs can uncover valuable opportunities for funding.

Specialized Lenders

Some lenders specialize in providing financing to minority-owned businesses, offering tailored products and services that address their unique challenges. Connecting with these lenders can provide additional resources and support, making it easier to secure funding that aligns with your business goals.

Community Support Resources

Many community organizations and nonprofit groups offer resources, mentorship, and networking opportunities specifically for minority entrepreneurs. Engaging with these organizations can provide valuable support and guidance, enhancing your chances of securing financing and achieving business success.

How Can I Use a Small Business Loan to Grow My Business?

A small business loan can provide the capital necessary for growth, whether it’s investing in marketing, expanding operations, or hiring new employees. Understanding how to allocate these funds effectively is key to maximizing your investment.

Investing in Marketing

Using loan funds for marketing can help increase brand awareness and attract new customers. Whether through digital advertising, social media campaigns, or traditional marketing strategies, investing in marketing can lead to higher sales and revenue growth, ultimately supporting loan repayment.

Expanding Operations

Loan funds can also be used to expand operations, such as upgrading equipment, renovating facilities, or opening new locations. These investments can enhance efficiency and productivity, driving long-term growth and profitability for your business.

Hiring Employees

Investing in human capital by hiring new employees can significantly benefit your business. A skilled workforce can improve service delivery, drive innovation, and increase overall operational capacity. Using loan funds to hire the right talent can be a strategic move to facilitate growth.

What Should I Know About Loan Renewal and Refinancing?

Loan renewal and refinancing can provide opportunities to secure better terms or access additional funds. Understanding when and how to pursue these options is essential for effective financial management.

When to Consider Refinancing

Refinancing may be beneficial if interest rates have dropped significantly since you took out your original loan or if your credit score has improved. This can allow you to secure a lower interest rate, reduce monthly payments, or change the loan term to better align with your financial goals.

Benefits of Loan Renewal

Loan renewal can help businesses access additional funds without going through a lengthy application process. Renewing an existing loan can also allow you to take advantage of better terms if your financial situation has improved, making it a viable option for many business owners.

Potential Risks of Refinancing

While refinancing can offer benefits, it also comes with potential risks, such as extending your repayment term and increasing total interest paid over the life of the loan. Carefully evaluating the financial implications of refinancing is essential to ensure it aligns with your long-term goals.

What Are the Best Practices for Managing Loan Repayment?

Managing loan repayment effectively is crucial for maintaining your business’s financial health. Developing a repayment strategy can help ensure you meet your obligations without compromising cash flow.

Creating a Repayment Schedule

A well-structured repayment schedule can help you manage your loan payments alongside other business expenses. Consider aligning your payment dates with your cash flow patterns to ensure you have sufficient funds available when payments are due.

Strategies for Early Repayment

If your business experiences unexpected growth or surplus cash flow, consider making extra payments toward your loan principal. This can reduce the total interest paid over the life of the loan and help you pay off your debt more quickly, freeing up resources for other investments.

Avoiding Late Fees

To avoid late fees, set reminders for payment dates and consider automating payments if possible. Staying organized and proactive about your repayment schedule can help you maintain a good relationship with your lender and protect your credit score.

How Can I Leverage Technology to Secure a Small Business Loan?

Technology has transformed the lending landscape, making it easier for small business owners to access loans. Leveraging digital platforms and tools can streamline the application process and enhance your chances of securing financing.

Using Online Platforms

Online lending platforms allow borrowers to apply for loans quickly and easily, often providing access to multiple lenders in one place. These platforms can simplify the comparison process and increase your chances of finding favorable terms.

Fintech Innovations

Fintech companies are revolutionizing the lending process by utilizing technology to assess creditworthiness and streamline approvals. These innovations can provide quicker access to funds and more flexible lending options for small business owners.

Digital Documentation Tools

Utilizing digital documentation tools can simplify the process of gathering and submitting necessary financial records. These tools can help you keep your documents organized and readily accessible, making it easier to streamline the application process with lenders.

What Resources Are Available for Small Business Owners in Ohio?

Small business owners in Ohio have access to a wealth of resources, including local business associations, government programs, and online financial education platforms. Utilizing these resources can provide valuable support and guidance throughout the borrowing process.

Local Business Associations

Joining local business associations can provide networking opportunities, mentorship, and resources for small business owners. These organizations often host workshops and events that can help you connect with potential lenders and other entrepreneurs.

Government Resources

The state of Ohio offers various resources for small businesses, including grant programs, training opportunities, and access to financial assistance. Researching these programs can help you uncover potential funding opportunities and support services tailored to your business’s needs.

Online Financial Education

Many online platforms offer financial education resources, including courses, webinars, and articles that cover topics like loan management, budgeting, and cash flow management. Taking advantage of these educational resources can enhance your financial literacy and empower you to make informed borrowing decisions.

How Do I Prepare for a Loan Application Interview?

Preparing for a loan application interview involves understanding common questions, presenting financial statements clearly, and demonstrating your business knowledge. These preparations can enhance your chances of a successful application.

Common Interview Questions

During a loan application interview, lenders may ask about your business model, financial projections, and plans for using the loan. Preparing thoughtful responses to these questions can demonstrate your knowledge and commitment to your business’s success.

Presenting Financial Statements

When presenting financial statements, ensure that they are clear, organized, and up-to-date. Being able to explain your financial data in simple terms can help build trust with lenders and show that you have a solid understanding of your business’s financial health.

Demonstrating Business Knowledge

Proving that you have a strong grasp of your industry and market can set you apart from other applicants. Researching your competitors, understanding market trends, and being able to articulate your business’s unique value proposition can impress lenders and increase your chances of approval.

What Are the Tax Implications of Small Business Loans?

Tax implications associated with small business loans can affect your overall financial strategy. Understanding these implications is essential for effective tax planning and compliance.

Interest Deductibility

Generally, interest paid on business loans is tax-deductible, which can help reduce your taxable income. However, it’s crucial to maintain accurate records of your loan payments and consult with a tax professional to understand the specific rules and regulations that apply to your situation.

Impact on Business Taxes

Taking out a loan can impact your business taxes in various ways, including how your profits are calculated and reported. Understanding how to account for loan proceeds and repayments can help you navigate tax season more effectively and avoid potential pitfalls.

Record-Keeping Requirements

Maintaining thorough records of your loan transactions is essential for tax compliance and financial management. Keeping organized documentation of all loan-related expenses and payments can simplify your tax preparation and ensure you have the necessary information when filing your taxes.

How Can I Build a Strong Relationship with My Lender?

Building a strong relationship with your lender can lead to better service, more favorable loan terms, and additional support for your business. Effective communication and transparency are key components of fostering this relationship.

Effective Communication Strategies

Maintaining open lines of communication with your lender is crucial for a successful partnership. Regular updates on your business’s performance and any changes to your financial situation can help keep your lender informed and demonstrate your commitment to responsible borrowing.

Understanding Lender Expectations

Each lender has specific expectations regarding communication and reporting. Understanding these expectations can help you maintain a positive relationship and ensure that you meet your obligations as a borrower. This knowledge can also provide insights into how to manage your loan effectively.

Long-term Relationship Benefits

Establishing a strong relationship with your lender can provide long-term benefits, such as easier access to future financing and more personalized service. Building trust and demonstrating reliability can lead to better loan terms and conditions down the line, supporting your business’s growth.

Mini FAQ

1. What is the average interest rate for small business loans in Ohio? Average interest rates can range from 6% to 30%, depending on the lender and your credit profile.

2. How can I improve my credit score before applying for a loan? Pay down debts, make timely payments, and check for errors on your credit report.

3. Are there specific loans available for minority-owned businesses in Ohio? Yes, there are government grants, specialized lenders, and community resources aimed at supporting minority-owned businesses.

4. How long does it typically take to get approved for a small business loan? Approval times can vary; traditional lenders may take weeks, while online lenders may provide same-day approvals.

5. What should I include in my business plan for loan applications? Include your business goals, financial projections, market analysis, and operational plans to demonstrate viability.

6. Can I use loan funds for marketing expenses? Yes, using loan funds for marketing can be an effective way to grow your business and increase revenue.

7. What are the risks of taking out a small business loan? Risks include potential default, impact on cash flow, and changing economic conditions that could affect repayment ability.