5 C's of Credit (5 C's of Banking)
Credit: https://ub.com.vn/threads/5-cs-of-credit-5-cs-of-banking.36/ Five C's of Credit (5 C's of Banking) Cash Flow Collateral Capital Character Conditions The “5 C’s of credit” or "5C's of banking" are a common reference to the major elements of a banker’s analysis when considering a request for a loan. Namely, these are Cash Flow, Collateral, Capital, Character and Conditions. This article will provide an in-depth description of each of the 5 C’s of credit or banking to help you understand what your banker needs to understand about your business in order to approve your loan. By the end of this article, you will have insight as to where your banker is coming from, and therefore better prepare you to handle their questions and concerns. Cash Flow Importance Cash Flow is the first "C" of the 5 C's of Credit (5 C's of Banking). Your banker needs to be certain that your business generates enough cash flow to repay the loa