What are the Five C's of Credit & describe them
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Character- Lessee's reputation and performance on past obligations
Cash Flow- Does the lessee have the capacity to repay?
Capital- Does the lessee have the ability to withstand a setback?
Collateral- What is the value of the asset securing the lease?
Conditions- Terms of the contract, economic, industry
, Receive request, collect data, analysis, and decision
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Credit Process
What is the Return on Equity formula?
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NEED INCOME STATEMENT AND BALANCE SHEET
Net income/equity
1. Net profit (income statement)/Total equity (balance sheet) ..... total equity
= common stock + retained earnings
eg. 54,000/250,000 = .22
What is the difference between a balance sheet & income statement?
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Balance sheet = one day at a time
Income statement = a period of time (yearly, quarterly, etc.)
What are some ways to prevent fraud in credit?
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Give this one a try later!
Character- Lessee's reputation and performance on past obligations
Cash Flow- Does the lessee have the capacity to repay?
Capital- Does the lessee have the ability to withstand a setback?
Collateral- What is the value of the asset securing the lease?
Conditions- Terms of the contract, economic, industry
, Receive request, collect data, analysis, and decision
Give this one a try later!
Credit Process
What is the Return on Equity formula?
Give this one a try later!
NEED INCOME STATEMENT AND BALANCE SHEET
Net income/equity
1. Net profit (income statement)/Total equity (balance sheet) ..... total equity
= common stock + retained earnings
eg. 54,000/250,000 = .22
What is the difference between a balance sheet & income statement?
Give this one a try later!
Balance sheet = one day at a time
Income statement = a period of time (yearly, quarterly, etc.)
What are some ways to prevent fraud in credit?
Give this one a try later!
