The Five Cs of commercial credit, character, capacity, capital, collateral and conditions, are the framework lenders have long used to judge whether a business is creditworthy. This 60-minute webinar explains what each term really means and how lenders apply it.
Understanding the Five Cs helps bankers assess the risk of lending to a particular borrower, manage their risk exposure and lend responsibly. It also lets them advise borrowers on how to strengthen their creditworthiness and secure financing in the future.
The model is simple to understand and easy to use. You'll see how lenders weigh each factor, get practical tips for improving creditworthiness, and come away with the big picture of credit analysis and underwriting.
WHY SHOULD YOU ATTEND?
Knowing how lenders think makes the credit process easier to navigate, whether you approve loans or apply for them. The session gives clear insight into how lending decisions are made and is a useful resource for anyone seeking business financing.
It suits credit analysts, underwriters, loan review officers, commercial bankers, credit and risk managers, senior lenders, bank leaders and directors, accountants and advisors, and small business owners and entrepreneurs.
AREA COVERED
- Introduction to the Five Cs of commercial credit
- Each of the Five Cs: character, capacity, capital, collateral and conditions
- Capacity: the ability to repay from cash flow
- Conditions: how borrowing needs change over the business cycle and why some industries are more exposed to downturns
- Collateral: analysis based on relative liquidation values
- Capital: the borrower's equity cushion and how much leverage is possible
- Character: willingness to repay as shown by payment history, plus fraud prevention tips
LEARNING OBJECTIVES
- Explain each of the Five Cs of commercial credit
- Use capacity, capital, collateral and conditions to analyze a borrower's ability to repay
- Use character to judge a borrower's willingness to repay
- Assess capacity from cash flow and collateral from liquidation value
- Advise borrowers on how to improve their creditworthiness
WHO WILL BENEFIT?
- Small business owners
- Credit analysts
- Loan underwriters, Loan review officers
- Commercial bankers, Credit department managers
- Senior lenders, Chief credit officers, Credit analysts
- Credit managers, Credit risk managers
- Risk managers, Enterprise risk managers
- Chief credit officers, Senior lending officer
- Bank director, Chief executive officer
- President, Board chairman
- Financial professionals, such as accountants, bookkeepers, and financial advisors.
- Entrepreneurs who are starting a new business and need financing.
Knowing how lenders think makes the credit process easier to navigate, whether you approve loans or apply for them. The session gives clear insight into how lending decisions are made and is a useful resource for anyone seeking business financing.
It suits credit analysts, underwriters, loan review officers, commercial bankers, credit and risk managers, senior lenders, bank leaders and directors, accountants and advisors, and small business owners and entrepreneurs.
- Introduction to the Five Cs of commercial credit
- Each of the Five Cs: character, capacity, capital, collateral and conditions
- Capacity: the ability to repay from cash flow
- Conditions: how borrowing needs change over the business cycle and why some industries are more exposed to downturns
- Collateral: analysis based on relative liquidation values
- Capital: the borrower's equity cushion and how much leverage is possible
- Character: willingness to repay as shown by payment history, plus fraud prevention tips
- Explain each of the Five Cs of commercial credit
- Use capacity, capital, collateral and conditions to analyze a borrower's ability to repay
- Use character to judge a borrower's willingness to repay
- Assess capacity from cash flow and collateral from liquidation value
- Advise borrowers on how to improve their creditworthiness
- Small business owners
- Credit analysts
- Loan underwriters, Loan review officers
- Commercial bankers, Credit department managers
- Senior lenders, Chief credit officers, Credit analysts
- Credit managers, Credit risk managers
- Risk managers, Enterprise risk managers
- Chief credit officers, Senior lending officer
- Bank director, Chief executive officer
- President, Board chairman
- Financial professionals, such as accountants, bookkeepers, and financial advisors.
- Entrepreneurs who are starting a new business and need financing.