List and Explain the "Five C's" of Credit Analysis

question 132

Essay

List and explain the "five C's" of credit analysis.

---

Definitions:

Opportunity Costs

The cost of forgoing the next best alternative when making a decision or choosing between options.

Decision Criterion

The rules or standards used to choose among alternatives in decision-making processes.

Timeliness

The characteristic of occurring at a suitable or opportune time, particularly relevant in the context of information delivery and project completion.

Future Cost

Costs that have not yet been incurred but are expected to be as a result of current decisions or plans.