Understanding the 5C's of Credit

A Guide to Financial Trustworthiness

Key Takeaways

• Lenders don't just look at one aspect of an individual's or business's financial behavior. The 5C's provide a holistic view, encompassing character, capacity to repay, capital investment, collateral to secure the loan, and the conditions surrounding the loan's terms and purpose.

• Whether it's a history of timely repayments (character) or inve…