The first four C’s—capacity, conditions, collateral, and character-- evaluate a borrower’s ability to repay, but character forces the lender to examine closely the borrower’s willingness to repay.
WHY SHOULD YOU ATTEND?
Bankers have relied on the 5 C’s of credit—capacity, conditions, collateral, capital, and character for many years, but what do these terms really mean, and how do lenders use them to determine whether a potential borrower is creditworthy? This credit model is simple to understand and easy to use. Attend the session to C for yourselves.
LEARNING OBJECTIVES
Areas to be discussed include:
- capacity measured by the ability to repay from cash flow
- conditions evaluated in terms of how borrowing needs change over the business cycle and what makes some industries more vulnerable to downturns than others
- collateral analyzed in terms of relative liquidation values
- capacity considered in terms of the borrower’s equity cushion and the degree of relative leverage possible
- character assessed in terms of willingness to repay as evidenced by payment history as well as tips for fraud prevention
WHO WILL BENEFIT?
- Credit analysts
- Credit managers
- Credit risk managers
- Risk managers
- Enterprise risk managers
- Chief credit officers
- Senior lenders
- Senior lending officer
- Bank director
- Chief executive officer
- President
- Board chairman
Bankers have relied on the 5 C’s of credit—capacity, conditions, collateral, capital, and character for many years, but what do these terms really mean, and how do lenders use them to determine whether a potential borrower is creditworthy? This credit model is simple to understand and easy to use. Attend the session to C for yourselves.
Areas to be discussed include:
- capacity measured by the ability to repay from cash flow
- conditions evaluated in terms of how borrowing needs change over the business cycle and what makes some industries more vulnerable to downturns than others
- collateral analyzed in terms of relative liquidation values
- capacity considered in terms of the borrower’s equity cushion and the degree of relative leverage possible
- character assessed in terms of willingness to repay as evidenced by payment history as well as tips for fraud prevention
- Credit analysts
- Credit managers
- Credit risk managers
- Risk managers
- Enterprise risk managers
- Chief credit officers
- Senior lenders
- Senior lending officer
- Bank director
- Chief executive officer
- President
- Board chairman