Capital is key to any business’ survival. Remember the “Five Cs” when financing a commercial loan
- Capacity: The ability to repay the loan based on the business’s cash flow.
- Collateral: Property pledged by the borrower to protect the interest of the lender.
- Credit: The ability to use credit effectively.
- Character: The business owner’s background and experience, financial wellness and involvement.
- Conditions: The terms of the loan, including loan amount, interest rate and credit policies.