Credit Evaluation Criteria
Published by slang March 23rd, 2006 in Credit ManagementCLICK THIS TO GO TO THE MAIN PAGE ON ALL ARTICLES ON CREDIT MANAGEMENT/CREDIT CONTROL
In the Credit Evaluation, the 5 Cs that should be considered are:
- Capital: Ability to pay
- Character: Willingness to pay
- Capacity: Ability to turn business into profit
- Condition: Business and trading environment
- Collateral: Guarantee available
| Evaluation Criteria | Measurement |
| Capital |
|
| Character |
|
| Capacity |
|
| Condition |
|
| Collateral |
|
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