C for Yourselves the 5 C's of Credit

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