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Passing The Five "C's" Of Credit
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Have you structured your business and created a personal image to maximize the credit your business should receive? To maximize your lines of credit, analyze your operations and your relationships with the financial community.

Many credit granters make borrowing decisions based on the Five "C's" of credit. They are:

1. CHARACTER

Financial institutions extend credit based on your creditability and personal character. Complete an application as truthfully, accurately, clearly an conservatively as possible.

The financial institution will conduct personal and commercial credit checks on you and your business. If a credit check uncovers an item that was omitted, in most cases, the creditor will
questions your credibility and will not extend credit.

The credit grantor tries to learn your business priorities. He wants to know if you would place your business first. It is incumbent upon you to convenience the credit that loan repayment, no matter the circumstances, will always remain your primary obligation and concern.

Personal luxury assets (boats or expensive cards) discourage credit because of the presumption that the loan proceeds will not necessarily be used to pay business obligations.

2. CAPACITY

The creditor tries to get to know the applicant and gain a feel for his/her managerial skills, business acumen, and position in the business and residential community. What talents, skills,
education, experience, ambition, drive, energy, commitment, and contacts do you bring to the business to help you survive, when so many entrepreneurs fail?

Be your own best sales person: sell yourself and your company in a manner that convinces the creditor to extend credit.


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