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.
What are the 5 Cs of credit that bankers refer to when making a loan decision? ›
The five Cs of credit are important because lenders use these factors to determine whether to approve you for a financial product. Lenders also use these five Cs—character, capacity, capital, collateral, and conditions—to set your loan rates and loan terms.
What are the 5c's of credit the institution's primary consideration in approving loan applications? ›
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 5 Cs of mortgage 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 are the 3 Cs of credit that lenders look for in a loan applicant? ›
Character, capital (or collateral), and capacity make up the three C's of credit. Credit history, sufficient finances for repayment, and collateral are all factors in establishing credit.
What are the 6cs of credit? ›
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 5 Cs of credit for business loans? ›
The five C's, or characteristics, of credit — character, capacity, capital, conditions and collateral — are a framework used by many lenders to evaluate potential small-business borrowers.
Which of the 5 Cs of credit would a lender use to determine if a potential borrower can afford the debt payment? ›
Capacity refers to your ability to repay the loan. The prospective lender will want to know exactly how you intend to repay the loan.
Which of the 5 Cs is the most important in lending decisions? ›
When you apply for a business loan, consider the 5 Cs that lenders look for: Capacity, Capital, Collateral, Conditions and Character. The most important is capacity, which is your ability to repay the loan.
Which of the 5 Cs refers to how the loan will be repaid? ›
Capacity assesses a borrower's financial ability to repay a loan, determined by evaluating their debt-to-income (DTI) ratio.
The Underwriting Process of a Loan Application
One of the first things all lenders learn and use to make loan decisions are the “Five C's of Credit": Character, Conditions, Capital, Capacity, and Collateral. These are the criteria your prospective lender uses to determine whether to make you a loan (and on what terms).
Which of the 5 Cs of credit help determine the ability to repay a loan based upon incoming and outgoing cash flow? ›
Capacity or cash flow measures the business's ability to repay a loan. Our lenders will compare current income with recurring debts and evaluate the business's debt-to-income ratio.
Which of the 5 Cs of credit are lenders primarily assessed by examining your credit report? ›
1. Character. In a financial context, the term “character” pertains to your reliability and trustworthiness. It's primarily gauged through a detailed examination of your personal credit history and credit score.
What are the 5 Cs? ›
The Five C's include critical thinking, creative thinking, communication, collaboration, and citizenship skills. Through application of these concepts across academic disciplines, students will be equipped with the knowledge and skills they need to succeed post-graduation.
What are the 5 Cs of credit approval? ›
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 7Cs of credit? ›
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 is 5 Cs of credit? ›
The five Cs of credit are character, capacity, capital, collateral, and conditions.
What are the 5 Cs of the credit decision quizlet? ›
Q-Chat
- what are the five C's of credit? character, capacity, capital, collateral, and conditions.
- Character definition. willingness to pay.
- Capacity definition. ability to repay.
- Capital definition. net worth.
- Conditions definition. personal and business.
- Character measure. ...
- Capacity measure. ...
- Capital measure.
The 5 Cs are Character, Capacity, Capital, Collateral, and Conditions.
