5 C's of Lending
When it comes to lending money, it is essential to have a set of criteria that you use to determine whether or not a loan is a good idea. This criteria will help you assess the risk of default and make sure that you are lending to people who are likely to repay the loan.
One very simple framework that can be used for this purpose is called the five C’s of lending. The five C’s stand for character, capacity, capital, collateral, and conditions. Within our latest whitepaper, we take a closer look at each one.
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