Five cs of obtaining credit, Financial Management

Assignment Help:

Five Cs of Obtaining Credit

The five crucial parts lenders examine previously issuing credit include:

1. Character.   This is a calculation of the borrower's integrity as related to seeing the loan as an obligation that must be repaid.

2. Capacity.    This is a calculation of a business's ability to create the cash flows needs to service the debt on hand.

3. Capital.   This is a calculation of the borrowing firm's net worth.

4. Collateral.   This is a calculation of the firm's assets available to privacy the debt requested.

5. Conditions.   This is a measure of the conditions of the loan, as well as prevailing industry and general economic conditions that might influence the loan repayment.


Related Discussions:- Five cs of obtaining credit

Describe about accountants report, Q. Describe about Accountants Report? ...

Q. Describe about Accountants Report? Accountants' Report - Formal document which communicates an independent accountant's: (1) expression of limited assurance on FINANCIA

How & why does working capital affect incremental cash flow, How and why do...

How and why does working capital affect the incremental cash flow estimation for a proposed large capital budgeting project?  Explain. Several large projects require additional

Companies that would be best able to handle high debt levels, Give two exam...

Give two examples of types of companies that would be best able to handle high debt levels. Companies that manage local telephone service and those that manage natural gas deli

Investment decision and financing decision, The Investment Decision: - Inv...

The Investment Decision: - Investment decision as well known as 'Capital Budgeting' is related to the selection of long-term assets or else projects in which investments will be m

Business analysis, 1. Each student has been allocated one Australian compan...

1. Each student has been allocated one Australian company. This information is available in the unit website. You should check that a company is assigned to you. 2. It is your r

Financial management in marketing department, Q. Financial Management in Ma...

Q. Financial Management in Marketing Department? The marketing department of a firm is concerned with the ultimate activity of the firm Le. the selling of goods and services to

Explain the pricing spill over effect, Explain the pricing spill-over effec...

Explain the pricing spill-over effect. Suppose a firm operating in a segmented capital market (such as China, for example) decides to cross-list its stock in New York or London.

Semester 1, which type of financing is appropriate to each firm

which type of financing is appropriate to each firm

Statement showing working capital requirement, Current Assets:- Stoc...

Current Assets:- Stock of Raw-Materials :- [(Cost of yearly consumption Of raw material)*{ (Average Inventory holding period (weeks/months))}/(52 weeks / 12 months)]=

Write a report to outlining the theoretical arguments, QUESTION The Man...

QUESTION The Managing Director of your firm is thinking aloud about an appropriate gearing level for the company: "The consultants I spoke to yesterday explained that some t

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd