The future success of the business depends on a number of external conditions, which potential lenders will evaluate to make sure the business is headed in the right direction.
To assess the risk, they’ll take into account the competition, economy, conditions of the industry, and local environment.
If business owners are able to show that conditions are favorable for continued growth, it’s more likely that they'll secure the needed financing.
Understanding the five “Cs” of business credit can help you better prepare for the questions you may be asked the next time you apply for credit.
Disclaimer
The information contained herein is shared for educational purposes only and it does not provide a comprehensive list of all financial operations considerations or best practices. This information does not represent any opinion, guidance or recommendation, whether formal or informal, of Capital One, National Association, or any of its officers, directors, employees, advisors, attorneys, consultants, affiliates or subsidiaries (collectively, “Capital One”). Nothing contained herein shall give rise to, or be construed to give rise to, any obligations or liability whatsoever on the part of Capital One.
