Conditions (5 C's of Credit)
What does it mean
In the 5 C’s of Credit framework, Conditions refers to the overall economic environment in which the business operates. Some conditions help a borrower succeed and other conditions make it difficult.
Why does it matter
Understanding how the current economic situation impacts the borrower is good to know because even though the borrower’s current financials may support the debt, if economic conditions shift enough, that may not be the case.
Other Relevant Terms
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Greetings! I'm Clay Sharkey, and there is nothing I like more than assisting others in achieving their goals. I firmly believe that by enhancing a banker's understanding of their customer's' business, they can provide superior service. This superior service, in turn, leads to stronger relationships for the bank, improved performance for the businesses, and better experiences for our communities. Win-win-win.
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