The 5 Cs of Credit: Character

We have discussed what types of information lenders and the SBA require when applying for a 504 loan, but how do they evaluate the information? Although every lending situation is different, most lenders use the Five Cs of Credit when assessing your loan application. These are Character, Capacity, Capital, Conditions and Collateral. We will examine each of these areas and why they matter in the lending environment.

SBDCs Can Improve Your SBA 504 Loan Outcome

Previously on our blog, we have detailed the steps in preparing for an SBA 504 loan. We identified the crucial information needed for a successful application and outlined the elements of a solid business plan. However, you might not know that there is an extensive network of Small Business Development Centers eager to assist you in gathering and understanding the information necessary for your 504 loan. Even more exciting, consulting services are free of charge and training services cost very little.