Character & Collateral
In the commercial lending world, there are five key focal points considered when granting credit. Known as the “Five Cs of Credit,” the system has been taught for many years to bankers and credit analysts worldwide. The “Five Cs of Credit” are: Character, Capacity, Capital, Collateral, and Conditions.
While all five are important, the team at A/R Funding focuses primarily on two of these five. We evaluate the Character of our clients, and we analyze the Collateral (aka, creditworthiness) of the companies with whom our clients do business.
Character
A/R Funding reviews the integrity of the company and its management/ownership team. The fundamental questions asked are: Will they do the right thing, both in their dealings in the marketplace, and with us, the funding source? Also, what patterns are evident (good and bad) in their past relationships with lenders?
Collateral
Our clients factor invoices owed to them by other companies. We then review the creditworthiness of those companies and evaluate their ability to pay the invoices we factor.
A/R Funding is a viable funding source for companies that exhibit strength in both Character and Collateal. Our team is resourceful, flexible, and reliable, and our goal is make financing available to you. Contact us today to discuss your specific needs.
Recent Posts
