The 6 ‘C’s — character, capacity, capital, collateral, conditions and credit score — are widely regarded as the most effective strategy currently available for assisting lenders in determining which financing opportunity offers the most potential benefits. The 6 ‘C’s are designed to assist lenders in determining which financing opportunity offers the most potential benefit to company owners. They provide a framework for conducting an analysis of a firm that takes into account both its strengths and its weaknesses. When this strategy is used, the lender is able to fully determine the best answer to meet the monetary requirements of the borrower.
You will get a comprehensive understanding of the 6 Cs of lending during this webinar. You will also get an understanding of how this technique insulates the lending process to meet the requirements of commercial financing.
What You’ll Learn
This webinar will provide you with valuable resources for analyzing the risk factor of borrower financing requirements. Additionally, you will have a deeper comprehension of the 6Cs Methodology.
- Methodology decision-making based on the 6Cs: character and capability Capital. Condition. Collateral. Cash Flow.
- What are the advantages and disadvantages of 6C’s methodology?
- Evaluation procedure for creditworthiness
- Why are the 6Cs essential for both the lender and the borrower?
- Which C is the most crucial in the 6 Cs methodology?
- Why is credit risk crucial for financial institutions?
- The critical importance of the 6Cs approach to commercial financing.
Who Should Attend
Loan Officers, Loan Review Officers, Senior Lenders, Credit Administration Support Staff, Small Business Lender, Members of Bank’s Loan Committee, Credit Risk Managers, Commercial Junior lenders, Branch Managers.
Instructor Bio
Carolyn D. Riggins is the founder and owner of CDR Consulting Services, LLC in Atlanta’s Greater District, Georgia. CDR Consulting Services specializes in training, coaching, team development, and detecting critical gaps.
For 35 years, Ms. Riggins worked in retail banking at First Florida Bank, Barnett Bank, Mercantile Bank, and TD Bank. Ms. Riggins increased her client relationships by 71 million dollars at TD Bank by providing valuable training and continued teaching her teams. Ms. Riggins has held a variety of management positions at various banks throughout her career. She held the positions of Assistant Vice President Store Manager, Vice President Hub Manager, and Vice President Retail Regional Manager under her supervision. Ms. Riggins was successful in these numerous leadership positions by creating, coaching, and educating her team to accomplish sales revenue growth, deposit growth, customer growth, loan growth, and compliance. Ms. Riggins has garnered numerous honors for being the region’s top-performing manager of the year.
Ms. Riggins has also developed, coached, and trained a number of her team members who have been recognized as high achievers in the region. Additionally, Ms. Riggins uses her Bachelor of Applied Science in Management and Organizational Leadership from St Petersburg College to develop team members’ abilities to succeed in their roles. One of Ms. Riggins’ aims is to consistently train and coach by utilizing her knowledge and expertise to develop, transform, and affect exceptional leaders and team players on a daily basis. Ms. Riggins has now incorporated her financial expertise, coaching, training experience, abilities, and education into her business, CDR Consulting Services, in order to assist other businesses in achieving success.
Registration Options
Live Access, 30 Days OnDemand Playback, Presenter Materials and Handouts $279
- Available Upgrades:
- 12 Months OnDemand Playback + $110
- 12 Months OnDemand Playback + Digital Download + $140
- Additional Live Access + $85 per person
FAQs
The 6 'C's — character, capacity, capital, collateral, conditions and credit score — are widely regarded as the most effective strategy currently available for assisting lenders in determining which financing opportunity offers the most potential benefits.
Which of the 5 C's is the most important in lending decisions? ›
Each of the five Cs has its own value, and each should be considered important. Some lenders may carry more weight for categories than others based on prevailing circ*mstances. Character and capacity are often most important for determining whether a lender will extend credit.
What are the 5 C's of credit which lenders take into account when deciding whether or not they should make a loan to an applicant? ›
Character, capacity, capital, collateral and conditions are the 5 C's of credit. Lenders may look at the 5 C's when considering credit applications. Understanding the 5 C's could help you boost your creditworthiness, making it easier to qualify for the credit you apply for.
What are the 7 C's of underwriting? ›
In the mortgage industry, we commonly learn about the 4 C's of mortgage underwriting: Credit, Capacity, Collateral, and Capital. However, I believe that there are three additional C's that are essential: Common Sense, Communication, and Collaboration.
What are the 5cs of credit that are sometimes used by bankers and others to determine whether a potential loan will be repaid? ›
The lender will typically follow what is called the Five Cs of Credit: Character, Capacity, Capital, Collateral and Conditions. Examining each of these things helps the lender determine the level of risk associated with providing the borrower with the requested funds.
What are the six basic Cs of lending? ›
The 6 'C's — character, capacity, capital, collateral, conditions and credit score — are widely regarded as the most effective strategy currently available for assisting lenders in determining which financing opportunity offers the most potential benefits.
What are the five Cs of lending? ›
Called the five Cs of credit, they include capacity, capital, conditions, character, and collateral. There is no regulatory standard that requires the use of the five Cs of credit, but the majority of lenders review most of this information prior to allowing a borrower to take on debt.
What is the 5c analysis in banking? ›
Regardless of the type of financing needed, a bank or lending institution will be interested in both your business and personal financials. Credit analysis is governed by the “5 C's of credit:” character, capacity, condition, capital and collateral.
What are the 5cs of commercial lending? ›
Conclusion. The 5 Cs—character, capacity, capital, collateral, and conditions—are the linchpin to a successful loan application.
Which of the 5 Cs of credit requires that a person be trustworthy? ›
1. Character. A lender will look at a mortgage applicant's overall trustworthiness, personality and credibility to determine the borrower's character. The purpose of this is to determine whether the applicant is responsible and likely to make on-time payments on loans and other debts.
Condition – The purpose and details of your loan. Capacity – How you plan of to repay the loan. Collateral – A form of security that guarantees repayment. Character – A look at your credit history, demonstrated responsibility and the integrity of your actions.
What are the 7 C's of credit lending? ›
The 7Cs credit appraisal model: character, capacity, collateral, contribution, control, condition and common sense has elements that comprehensively cover the entire areas that affect risk assessment and credit evaluation.
What are the 4 C's of loan underwriting? ›
Standards may differ from lender to lender, but there are four core components — the four C's — that lenders will evaluate in determining whether they will make a loan: capacity, capital, collateral and credit.
Which of the 5 C's of credit help determine the ability to repay a loan based upon incoming and outgoing cash flow? ›
Capacity. Also known as cash flow, capacity determines a borrower's ability to repay debt. In essence, capacity focuses on whether the investment can generate enough cash flow to repay overall debt. Capacity can sometimes be called the Primary Source of Repayment.
Which of the five C's of credit refers to your business's ability to repay the loan on time? ›
Capacity refers to your ability to repay the loan. The prospective lender will want to know exactly how you intend to repay the loan. The cash flow from the business, the timing of the repayment, and the probability of successful repayment of the loan will be considered.
Which of the five C's of credit refers to your businesses ability to repay the loan on time? ›
Definition: Capacity looks at your ability to repay a loan. By assessing your debt to income ratio and other factors, lenders can make a judgement as to whether or not you have the “capacity” to meet your loan obligations.
What is the most important and first among the principles of good lending? ›
Safety of funds :
Safety is the first and foremost thing that the banker has to consider, especially because he has to disburse depositors' money. As it is his primary duty to safeguard the monies of others, he has to exercise caution, prudence and tact.
Which of the 5 Cs of credit help determine the ability to repay a loan based upon incoming and outgoing cash flow? ›
Capacity. Also known as cash flow, capacity determines a borrower's ability to repay debt. In essence, capacity focuses on whether the investment can generate enough cash flow to repay overall debt. Capacity can sometimes be called the Primary Source of Repayment.
Which one of the 5c's refers to your ability to meet the loan payments? ›
Capacity refers to your ability to repay the loan. The prospective lender will want to know exactly how you intend to repay the loan. The cash flow from the business, the timing of the repayment, and the probability of successful repayment of the loan will be considered.
