When assessing the creditworthiness of new entrepreneurs, lending institutions review the "Five C's." The focus on the intended purpose of the loan is known as:

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The focus on the intended purpose of the loan is known as "conditions." The other "Five C's" are "capacity" (the borrower's ability to repay the loan), "capital" (the borrower's existing financial resources), "collateral" (assets that can be used as security for the loan), and "character" (the borrower's credit history and reputation).

When Assessing the Creditworthiness of New Entrepreneurs, Lending Institutions Review