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Scenario 9-2. Ryan has just graduated from college with a business degree. He has a wonderful idea for a new business called Ryan's Road Machines. He would like to sell a variety of all terrain vehicles (ATVs) for the personal use of his selected clientele. Outstanding customer service will be his competitive advantage as he provides individual service to each of his customers. He has just one small problem, no capital. He knows that he must meet the five Cs of credit when looking at external funding in order to prove his creditworthiness.
-In Reference 9-2 above, Ryan has never borrowed money before; however, he currently has a loan outstanding for his school expenses. Which of the five Cs is judged primarily on the applicant's past repayment patterns?

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The five Cs of credit are character, capital, collateral, conditions, and capacity. Among these, character is judged primarily on the applicant's past repayment patterns, including credit history and credit score. Since Ryan has a loan outstanding for his school expenses, this would be taken into account when assessing his character as a borrower.

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