204k views
5 votes
What are the three C’s that a lending institution looks for?

cash flow, commitment, and condition

cash flow, credit, and commitment

commitment, condition, and credit

condition, credit, and cash flow

User Misman
by
5.6k points

2 Answers

5 votes

The correct answer is A.

User Marc G
by
6.0k points
4 votes

Answer:

Option A. The three C's that a lending institution looks for are cash flow, commitment, and condition.

Step-by-step explanation:

Known as the "three C's" the following are the characteristics that lending institution use in order to give a framework to its employees when considering possible clients that will acquire credit. The first one is cash flow which is the capacity to repay the loan that the client has to posses. Commitment is the agreement in which the institution will state the amount that is going to be loaned on the value of some form of collateral asset that can be pledge as security. The last term is condition which is the way in which the business will use the loan and how that can potentially be affected by economic or industry factors.

User Valisha
by
6.2k points