Cash Is One of the Six Cs of Lending and Refers

question 59

True/False

Cash is one of the six Cs of lending and refers to the fact that the lender wants to make sure that the borrower has the ability to generate enough cash to repay the loan.

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Definitions:

Highly Differentiated

Products or services that are distinctly unique from competitors' offerings, often featuring unique attributes or benefits.

Supplier Power

The influence that vendors have over the market or their customers, often due to the scarcity of their product, lack of substitutes, or control of prices.

Valuation

The process of determining the current worth of an asset or a company.

Production Cost

The total expenses incurred in the process of creating a product or service, including raw materials, labor, and overhead costs.