Mark Shearer - B2b cfo - 5 cs of credit

Mark Shearer - B2B CFO - What does a bank look for to loan me money Hi, I'm Mark Shearer with B2B CFO. All business owners know that cash is the lifeblood of their business. Therefore maintaining a good working relationship with their banker and a healthy line of credit is vital. Many business owners ask "What will the bank look for to loan my business money?" Well most bankers look at the 5 C's of Credit, which are; Character, Collateral, Capitalization, and Conditions, meaning economic conditions. Character is evidence of your willingness to pay back your loan, a good credit report. Cash Flow is your company's capacity to pay back your loan, a conservative guidelines is that you should have two dollars of income for every one dollar of debt. Collateral is how your lenders get their money back if the business fails. They secure their loan against your assets to protect against this worst-case scenario. Capitalization is how much money has put back into the business. Bankers went to see that you have a financial commitment and that you put yourself at risk in your own company. And economic conditions, the banker evaluates the current economic conditions and how they will affect your company. That's the waterfront on the 5 C's of Credit. There's a lot more to learn, if you'd like to talk further give me a call. Thanks and have a great day.