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What are the 5Cs of credit?

Updated: 9/13/2023
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15y ago

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5 C's of Credit refer to the factors that lenders of money evaluate to determine credit worthiness of a borrower. They are the following: 1. Borrower's CHARACTER 2. Borrower's CAPACITY to repay the loan 3. COLLATERAL or security/guarantee for the obligation 4. Borrower's CAPITAL (business networth) or downpayment for the loan 5. Present and anticipated CONDITIONS of the borrower, collateral, business, and the industry or economy in general

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15y ago
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11y ago

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Q: What are the 5Cs of credit?
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