5C Business Credit



5 C of business loan are:

1. Character

2. Capital

3. Ability

Col. Suicide attack

Circumstances



The character is about you. It’s about your personal history, your stability and how reliable you are. This variable is more subjective than others, and one of the many reasons is that it is beneficial to do business with a bank where you have established relationships with the people who work there. In determining your role, the lender can look at your education, your work history, your personal income, and your personal reputation.

Again, it’s important to remember that this is an area of ​​business trust where relationships matter!



Capital is about how much you have invested in your business. Whether you are seeking a bank loan or a loan from a private investor, the lender will want to see that you have invested heavily in your business. In general, the more personal money you invest in your business, the better it will look to potential lenders. (However, if you don’t have enough confidence to invest in your business, why should they?)

Eligibility is about your ability to repay the loan according to the terms. Matters such as cash flow, payment date, and the assets and resources of any person providing personal guarantee will play an important role in determining your ability to repay the loan. Suicide is something that is offered to protect the debt. Anything from household goods to inventory can be considered a suicide attack. Suicide bonds can be easy to get approved for, and will require a lot of credit. In some cases, the more you can present yourself as a suicide bomber, the more likely you are to get approval.



“Terms” can mean many things, some of which may be beyond your control. The current economy, for example, can play a role in your ability to get a loan. This includes your industry and its economic status and the purpose of the loan.

If your industry is struggling and businesses in your industry are struggling, this can negatively affect your ability to get approval. Some loan objectives are more easily accepted than others. Loans are less likely to be approved for risky purposes, such as new and undivided expansion.

When your company meets these 5Cs, you have a better chance of getting approval.

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