BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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four Cs of credit
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80/20 rule
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“keep it simple” policy
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minimum approval rate standard
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Detailed explanation-1: -Standards may differ from lender to lender, but there are four core components-the four C’s-that lender will evaluate in determining whether they will make a loan: capacity, capital, collateral and credit.
Detailed explanation-2: -Calculate the Company’s Debt-to-Income Ratio Another way to determine a client’s creditworthiness is to calculate its debt-to-income ratio. This calculation shows you what portion the company’s debts make up its earnings. To determine the ratio, divide the company’s monthly debt payments by gross monthly income.
Detailed explanation-3: -This includes strategic and tactical steps to continually evaluate and improve four key financial indicators: cash flow, credit, customers, and collateral. We call these indicators the 4 C’s.
Detailed explanation-4: -What are the 5 Cs of credit? Lenders score your loan application by these 5 Cs-Capacity, Capital, Collateral, Conditions and Character. Learn what they are so you can improve your eligibility when you present yourself to lenders. Capacity.