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Is the ability to repay a loan. A) Capacity B) Capital C) Character Eliminate D) Collateral?
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How many seats in the capital FM arena?
The Capital FM Arena in Nottingham has a capacity of 10,000.
What is the capital of salzburg?
Salzburg is a city in its own right, so does not have a capital. It is in Austria. The capital of Austria is Vienna.
Kampala is the capital of what country?
Kampala is the capital of Uganda.
What country has the capital male?
Male is the capital of the Maldives.
What is the capital of conga?
The capital city of the Republic of the Congo is Brazzaville
What does the granting of credit depend on?
Granting credit typically depends upon three factors: character of the borrower, capacity to repay, and capital used as collateral
Define 5 cs of credit in banking terms?
The 5 C's of credit in banking terms are the following: 1. Character 2. Capital 3. Capacity 4. Collateral 5. Conditions
What are the four Cs of credit?
The four Cs of credit are Character, Capacity, Capital, and Condition.
What are the 5 Cs of credit that are sometimes used by bankers and others to determine whether a potential loan will be repaid?
The 5 C's of credit sometimes used by bankers and others to determine whether a potential loan will be repaid. Character, Capital, Capacity, conditions, and collateral. These are indications of whether a loan will be repaid on time, late, or not at all. Character, quality of the individual who is responsible for repaying the loan. Capital, level of financial resources available to the person and the debt to equity ratio. Capacity, availability and sustainability of the person's cash flow to pay the loan off. Conditions, operating income and cash flows to the economy. Collateral, assets that can be pledged against the loan.
What are the basic elements of credit?
If you are referrign to a credit report, the basic elements used are, what is your character like, how much capital and collateral you have. It basically consist of all your personal details.
What factors do you base on or consider designing a proper credit policy for a financial institution?
The factors that one should consider in designing a proper credit policy for a financial institution are character, capacity, capital, collateral and conditions. The first factor is character, which refers to a borrower's reputation. Capacity measures a borrower's ability to repay a loan by comparing income against recurring debts. The lender will consider any capital the borrower puts toward a potential investment, because a large contribution by the borrower will lessen the chance of default. Collateral, such as property or large assets, helps to secure the loan. Finally, the conditions of the loan, such as the interest rate and amount of principal, will influence the lender's desire to finance the borrower.
What are the 5Cs of credit?
5 C's of Credit refer to the factors that lenders of money evaluate to determine credit worthiness of a borrower. They are the following: 1. Borrower's CHARACTER 2. Borrower's CAPACITY to repay the loan 3. COLLATERAL or security/guarantee for the obligation 4. Borrower's CAPITAL (business networth) or downpayment for the loan 5. Present and anticipated CONDITIONS of the borrower, collateral, business, and the industry or economy in general
What does a bank require to advance a loan?
While financial organizations use different (usually proprietary) criteria to underwrite loans, in general, financial institutions are looking for the following five Cs when advancing a loan to someone: * CAPACITY (how will the loan get repaid; what is one's capacity to repay the loan) * CAPITAL (how much are you personally invested already to warrant a loan; for consumers, capital is equivalent to a down-payment) * COLLATERAL (what guarantees are in place to protect the bank from your non-payment; a house is the collateral for a mortgage) * CONDITIONS (where are you at when you ask for the loan and where is the general economy at when you request a loan) * CHARACTER (subjective decision as to whether you will pay back a loan, sometimes based on references, sometimes based on a conversation)
What were the three Cs of creditworthiness in the early days of credit?
Often, the three Cs of credit were applied to a credit applicant: character, capacity, and capital.
Is another name for capacity of a product to be useful?
utility
How many seats in the capital FM arena?
The Capital FM Arena in Nottingham has a capacity of 10,000.
What types of risk does the granting of credit entail?
The risk of lending on character is called "moral risk." The risk of lending on capacity is called "business risk." The risk of lending on capital is called "property risk."
