5c's of Credit

2.1 CAPACITY OF AN applier According to Jean Murray (2011), Capacity refers to the animation of the job to generate revenues in enact to pay touch the contribute. Since a new blood has no track track record of profits, it is riskiest for a bank to consider. David Alan (2009) support this by dictum that competency reflects the track in which the company intends to fall the loan. Jim Anderson (2012) supported this by saying that when evaluating the bloodline loan application the capacity of the borrower should be pass judgmentd by aiming at the companys get biography and track the repayment record. J. Wilkinson (2009) express that a banker necessarily to be certain that business generates enough cash operate to repay the loan requested. In order to determine this, a banker should look at a companys historical and communicate cash flow and compare that to the companys communicate debt service requirements. Tom Markel (2012) express that the capacity of payin g back the loan is the freshman thing to be evaluated when evaluating the business loan application. Capacity also is supported by Lopez (2008), who verbalize that capacity of repayment of loan is the major thing to be considered by the loaner. Capacity also has being supported by Posey (2010) who said that it is a key factor to be considered.

too gibe to Mike Schiano (2007), capacity for repayment of the loan should be assessed first in the business loan application Brghan and Daves (2012) supported this by arguing that capacity is among the major factor to be assessed in business loan application. Also according to Vunturella and Eric kson (2003), if the lender fails to evaluate! the capacity of the borrower in this business loan, there entrust be in a danger of default. 2.2 CAPITAL OF AN APPLICANT According to Zahorsky (2012), Net-worth and legality are the two key financials employ in assessing the ability to repay the small business source or loan. Baiden (2011), said that minimal or nonexistent righteousness makes a business susceptible to...If you want to get a full essay, order it on our website: BestEssayCheap.com

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