Generally, banks make loans on the basis of what are termed the five Cs: character, capacity, capital, collateral, and condition. In the case of entrepreneurs, _____ and _____ become the leading consideration, because the new business's performance estimates are based purely on forecasts.

Question

Quizplus · Accepted Answer

For entrepreneurs, character and capacity are crucial because the business is new and lacks a track record, so lenders rely on the entrepreneur's reputation (character) and ability to repay (capacity).

Generally, Banks Make Loans on the Basis of What Are