If you can answer yes to one of the C’s, we can work with you. Most banks need all C’s of credit to be met as a prerequisite to a loan. In most cases if you only have 4 of the C’s traditional lenders will turn you down. Ultegra is in the business of lending. If you have one C, you have our attention. The more C’s you have the more we can do for you.
The 5 C’s are a part of protocol that most traditional lenders follow: it is a method of credit analysis to evaluate your application for a loan. It is basis for determining credit limits.
This refers to your ability to repay the loan. Your revenues and expenses, the amount of your cash flows and the timing of your cash flows. It also takes into consideration your credit history.
Collateral refers to assets that you have available to secure your loan. Both your personal as well as business assets may be considered, such buildings, personal home, business equipment, etc. It could also be personal guaranteed by a third party.
Capital refers to your investment in the business. Generally traditional lenders will want to see that you have substantial investment in the business before approving a loan.
Conditions refer to things that might not be in your control, such as economic climate. Typically during a recession, it is more difficult for a small business to get funding. Conditions also refer to the intended purpose of the loan, which the bank will evaluate.
Character involves the lender making a subjective judgment as to whether the client is trustworthy in regards to repaying the loan and turning a profit. The bank will consider such things as education, overall experience, references, and industry experience.