5 C's of Credit

the process that lenders use to determine if money should be borrowed

• Financial Responsibility

• 5 C's of Credit

• Risk Management Strategies

• 5 P's of Marketing

credit history & reputation of borrowing money

• conditions

• capacity

• character

• collateral

the borrower's ability to pay back a loan

• capacity

• collateral

• character

• conditions

personal or business equity invested in the business or asset

• capital

• collateral

• conditions

• capacity

owned assets (typically liquid) that can be seized if the loan isn't paid

• collateral

• capital

• character

• conditions

when & how the loan will be repaid and interest rates

• capital

• character

• collateral

• conditions

debt to asset ratios, cash flow statements, & liquidity are used to determine _____

• character

• capacity

• capital

• conditions

waiting to apply for a line of credit for lower interest rates is an example of _____

• conditions

• capital

• collateral

• capacity

borrowing against a mortgage or equipment is an example of _____

• capacity

• capital

• collateral

• character

references, your reputation, credit score, and work experiences impact ______

• character

• conditions

• collateral

• capital