When assessing the creditworthiness of new entrepreneurs,lending institutions review the "Five C's".The guarantees,or additional forms of security (such as assets),the entrepreneur can provide the lender is known as:

Question

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Collateral refers to the assets or guarantees that an entrepreneur can provide as security to the lender. This is an important factor that lending institutions consider when assessing creditworthiness. Capacity refers to the entrepreneur's ability to repay the loan, capital refers to the financial resources available to the entrepreneur, conditions refer to external factors that may affect the loan, and character refers to the entrepreneur's reputation and trustworthiness. While all of these factors are important, collateral specifically addresses the question about additional forms of security provided by the entrepreneur, making it the correct answer.

When Assessing the Creditworthiness of New Entrepreneurs,lending Institutions Review the "Five