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 C's of credit when looking at external funding in order to prove his creditworthiness.
-In Scenario 9-2, Ryan's inventory will provide a large part of this
C .The machines themselves can be pledged as security in order to meet the C of ______.

Question

Quizplus · Accepted Answer

The machines themselves can be pledged as security, which aligns with the "Collateral" aspect of the five C's of credit. Collateral refers to assets that a borrower offers to a lender as security for a loan.