Examlex
Key Terms
Instructions: Please define the following key terms. Show Who? What? Where? When? Why Important?
Locarno Pact
5 C's of Credit
The five key elements lenders evaluate to assess a borrower's creditworthiness: character, capacity, capital, collateral, and conditions.
Capacity
The maximum level of output that a company can sustain to produce within a specified period under normal conditions.
Operating Cash Flows
The amount of cash generated by a company's normal business operations over a specific period.
Credit Analysis
The evaluation of an individual's or organization's ability to repay debt.
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