Term
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Definition
Human/management Factors
Financial position and progress
repayment capacity
loan purpose
collateral |
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Term
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Definition
Character
Personal financial history
management ability |
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Term
| Financial Position and Progress |
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Definition
should provide financial statments
look at liabilities
unavailable assets
non-productive assets
net worth or equity provides a measure of risk bearing capacity |
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Term
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Definition
short term is primarily determined by cash flow projection
borrowers tend to overestimate revenue and underestimate expenditures
profitabiltiy analysis is increasing in importance |
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Term
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Definition
| to secure a loan and provide a source of repayment in the event of loan default |
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Term
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Definition
| a sound loan effects the profitability of the business and provides a source of repayment |
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