THE C’s IN CREDIT
The five key elements a borrower should have to obtain credit are:
- Character (integrity)
2. Capacity(sufficient cash flow to serve the obligation),
3. capital(net worth),
4. Collateral(assets to secure the debt and condition (of borrower and the overall economy)
of all these elements, character is the most important. A man that has bad character may meet all other conditions, yet will fail to repay, as at when he is supposed to.