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Name and briefly explain the principal categories of criteria on which bankers base their decisions when...

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Finance

Name and briefly explain the principal categories of criteria onwhich bankers base their decisions when assessing a creditapplication?

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FiVE Cs criteria on which bankers base decisions to be considered on credit application are the following Capacity Capacity indicates the strength of the borrower to maintain the loan from the earnings produced by his expenses This is possibly the most significant of the five determinants The banker will determine accurately how the repayment is assumed to take a position cash flow from the company timely repayment the chance of strong repayment of the loan payment records and such determinants are analysed to appear at the feasible capacity of the firm to return the loan Capital Bankers also examine a borrowers assets    See Answer
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Name and briefly explain the principal categories of criteria onwhich bankers base their decisions when assessing a creditapplication?

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