5 Cs of Credit

The five Cs of credit are:

  • Character: The borrower’s willingness and ability to repay the loan.
  • Capacity: The borrower’s financial strength and ability to repay the loan.
  • Capital: The borrower’s financial resources, including cash on hand and assets.
  • Collateral: Assets that the borrower can pledge as security for the loan.
  • Conditions: The economic environment and the borrower’s business situation.

Check out this video for more information about accessing capital: