When individuals or businesses apply for credit—whether it’s a personal loan, a mortgage, or business financing—lenders don’t make decisions based on guesswork. Instead, they use a structured framework known as the 5 Cs of Credit.
Posts tagged as “Creditworthiness”
Controlling Credit generally refers to the strategic processes used to manage and mitigate financial risk associated with extending credit, either in a business-to-business context (credit control/management) or for an individual (personal credit control).
Loan origination is the comprehensive process by which a borrower applies for a new loan and a lender evaluates, approves, and disburses the funds. It is the critical first stage of the lending lifecycle, preceding loan servicing, which handles the management of the loan after it has been funded.
Lending and credit are fundamental concepts in finance, describing the process of one party providing money or assets to another, with the expectation of repayment.
Financial restructuring refers to the process of reorganizing a company's financial structure in order to improve its financial health, enhance liquidity, reduce debt burden, or prepare for growth.
Credit scores are a three-digit number that essentially acts as a snapshot of your financial responsibility and creditworthiness. It's a key tool used by lenders and other entities to assess the risk of doing business with you.