Money that has been invested in by the business owner or management team. 'SKIN IN THE GAME'. Why does it matter?
1 of 5
Collateral
Assets that have been pledged as security. Why is this important?
2 of 5
Character
The lender's opinion of the borrower's general trustworthiness, credibility and personality. Why does it matter?
3 of 5
Conditions
This is about how the business will use the loan and how this could be affected by economic industrial factors. Why is this matter ?
4 of 5
Capacity
This is the ability for the borrower's ability to repay the loan. This is important because business needs to be able to generate enough cash flow in order to repay the loan.
5 of 5
Other cards in this set
Card 2
Front
Collateral
Back
Assets that have been pledged as security. Why is this important?
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