EVER WONDER WHY SOME LOANS GET APPROVED AND OTHERS DO NOT? Understanding the “C’s of credit” will prepare you for the loan application process, paving the way to approval and funding!

2. LIVEOAKBANK
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EVER WONDER WHY
SOME LOANS GET APPROVED
AND OTHERS DO NOT?
Understanding Live Oak Bank’s “C’s of credit” will
prepare you for the loan application process, paving the
way to approval and funding!

3. LIVEOAKBANK
Character
The 5 C’s of Credit
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Capital
Conditions
Collateral
Cash Flow

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Character

5. LIVEOAKBANK
Can we TRUST you?
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Scores are Based Primarily on the Following:
1. Payment history
2. Revolving credit availability
3. Age of accounts
4. Collections
5. Personal bankruptcies
6. Liens and judgements

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Capital

7. LIVEOAKBANK
What is YOUR investment
•Personal Financial Statement
•“Skin in the Game”
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Conditions

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What is happening?
•What the loan will be used for
•What will be taking place
•Status of the business
•Industry & marketplace economy
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Collateral

11. LIVEOAKBANK
What if you DON’T pay it back?
•Worst case scenario
•Secondary source of repayment
•Collateral lending vs Cashflow lending
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Cash Flow

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HOW will you pay it back?
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•Historical repayment
•Debt service coverage ratio
•Projection based

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