Credit: Five C

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Credit: Five C

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Credit: Five C

  1. 1. The Professional Risk Managers’ International Association“Five C’s: Character, Capacity,Capital, Conditions, Collateral” Fahad Zafar MBA(Bradford), BSc (Middlesex) Co Regional Director
  2. 2. Risk Assessment – Determining accuracy of facts, – Evaluating and quantifying risk factors, – Meeting business expectations, – Satisfying company’s financial objectives.•
  3. 3. Credit Transaction• Risk of non-payment,• Timing,• Security,• Extra costs,• Legal aspects,• Economic Influences.
  4. 4. Character• Willingness to pay,• Morality,• Background,• Experience,• Abilities,• Favorable payment records,• Bankruptcies,• Litigation,• Settlements.
  5. 5. Capacity• Ability to pay bills when due,• Cash flow awareness - past, present & future,• How current assets are managed & utilized.
  6. 6. Capital• Equity or net worth,• Trend of business,• Investment & utilization of fixed assets.
  7. 7. Conditions• Industry,• Products,• Terms - selling & buying,• Delivery,• Seasonal,• Changes in operations,• Rent or own,• Locality of business.
  8. 8. Collateral• Physical Assets,• Guarantees - types & applications,• Risk mitigation options.
  9. 9. Question & Answers Thanks Alot ! fahadzafar@ymail.com

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