answersLogoWhite

0


Best Answer

Character. This refers to the personal integrity of the borrower. His determination to pay can be evaluated by his past business record. Character also includes personal habits, attitudes, or vices of the borrower.

Capacity. This has something to do with the managerial ability of the borrower. Could he use wisely and efficiently his loan? Factors like responsibility, maturity and business competence of the borrower determine his capacity to pay.

Capital. This refers to the resources owned by the borrower such as priorities. With such properties, the ability of the borrower to obtain credit has become greater.

Collateral. Usually, the title of the land is required as a security of the loan. This is a safety measure for the payment of the loan. Buildings, machines and other valuable properties are used as collaterals.

Condition. Conditions in the community, industry, or the whole economy affect the ability of borrowers to pay their loans. For example; peace and order, inflation, profitability of a project, etc.

User Avatar

Wiki User

11y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What are the basis of credit?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What are The Amounts on the books that are on a credit basis are considered a current asset on the books and?

Amounts owed to a business that are on a credit basis are considered a current asset on the books and


Amount owed to a business that are on a credit basis are considered a current asset on the books and?

Amounts owed to a business that are on a credit basis are considered a current asset on the books and


Amounts owed to a business that are on a credit basis are considered a current asset on the books and.?

Amounts owed to a business that are on a credit basis are considered a current asset on the books and


Are Amounts owed to a business that are on a credit basis are considered a current asset on the books and?

Amounts owed to a business that are on a credit basis are considered a current asset on the books and


Amounts owed to a business that are on a credit basis are considered a current asset on the books and...?

Amounts owed to a business that are on a credit basis are considered a current asset on the books and


What are amounts owed to business that are on a credit basis are considered a current asset on the books and?

Amounts owed to a business that are on a credit basis are considered a current asset on the books and


What amounts owed to a business that are on a credit basis are considered a current asset on the books and...?

Amounts owed to a business that are on a credit basis are considered a current asset on the books and


Amounts owed to a business that are on a credit basis are considered a current asset on the books and?

Amounts owed to a business that are on a credit basis are considered a current asset on the books and


What is the amount owed to a business that are on a credit basis are considered a current asset on the book?

Amounts owed to a business that are on a credit basis are considered a current asset on the books and


What is Amounts owed to a business that are on a credit basis are considered a current asset on the books and?

Amounts owed to a business that are on a credit basis are considered a current asset on the books and


What is associated with the cash basis of?

all vendors are paid on credit


How can a person get their credit report score for free on an annual basis?

A person can get their credit report score for free on an annual basis by applying online at a credit report site that will offer free credit reports. Someone can fill out a report online, or mail one to a business that offers free annual credit reports.