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    Which C is most imporant in 5Cs of Credit

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    The most important of the five Cs of credit are ________

    collateral & capacity, capital & collateral, character & capacity, or character & conditions

    I beleve - character & capacity - is the correct answer - please advsie answer & why - thanks!

    © BrainMass Inc. brainmass.com October 6, 2022, 9:38 am ad1c9bdddf
    https://brainmass.com/business/credit-management-credit-policy-analysis-and-risk/most-important-credit-35356

    SOLUTION This solution is FREE courtesy of BrainMass!

    The answer is character and capital.

    The 5 Cs are - Character, Capacity, Capital, Conditions and Collateral.

    Why Character and Capacity are important is because Character tells us about the willingness to repay. If the willingness is not there then repayment can be a problem. The next is the capacity to repay. Thus the customer not only should have the capacity to repay but also the willingness.

    The rest capital or collateral only add physical dimension to credit request, but if the willingness or the capacity to repay is not there, then repayment is a problem.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    © BrainMass Inc. brainmass.com October 6, 2022, 9:38 am ad1c9bdddf>
    https://brainmass.com/business/credit-management-credit-policy-analysis-and-risk/most-important-credit-35356

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