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 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.
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.
When a bank considers the three C's of a person applying for a loan they are looking at? ›
In credit the three C's stand for character, capacity and capital. Typically, these factors of credit are used to determine the creditworthiness of a business or an individual before giving them loan.
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 C's of banking? ›
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.
Which is the most important C of the five Cs of credit? ›
Bottom Line Up Front. 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 accounts for the borrower's ability to repay the loan based on their available cash flow? ›
Capacity summarizes a borrower's ability to repay a loan based on the applicant's available cash flow. When evaluating this element of credit, lenders consider whether the borrower can cover new loan payments on top of their existing debt service. Relevant factors include the borrower's income and income stability.
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.
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.
What are the three C's of lending? ›
Students classify those characteristics based on the three C's of credit (capacity, character, and collateral), assess the riskiness of lending to that individual based on these characteristics, and then decide whether or not to approve or deny the loan request.
Which of the 5 Cs of credit refers to the security you can provide the lender as a pledge for fulfillment of the obligation? ›
Collateral in 5 Cs of Credit
Collateral can be pledged by the borrower to secure a loan and receive more favorable terms. The collateral-backed loan, or “secured loan”, provides the lender with more assurance because the downside risk is reduced.
What are the 5 C's of credit and what do they determine? ›
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 refers to how the loan will be repaid? ›
Bottom Line Up Front. 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 C's 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.
What are the 5 C's of credit Quizlet? ›
Collateral, Credit History, Capacity, Capital, Character. What if you do not repay the loan? What assets do you have to secure the loan? What is your credit history?
