How does a lender determine the financing rate?
Credit Worthiness. The most important consideration is the credit worthiness of the business that is purchasing the software. Standard industry practice is to assign an “AAA”, “AA”, “A’, “B” or “C” credit rating. Factors such as years in business, size of the business and outside credit rating are considered in calculating credit worthiness. The lower the credit risk, the lower the rate that a Canadian business would expect to pay.
