The 5 C's Of

Character

• Judgment made by the banker about the prospective client.

Capacity

• Refers to the ability of the firm to repay a loan.

Collateral

• Collateral refers to forms of security you can provide to your bank or other lender.

Capital

• Represents the owners investment in a business.

Conditions

• Refers to the overall economic structure and external environment surrounding the bank and the business firm.