5 Cs of Credit


Heard of this test for credit worthiness? When being considered for such a bond, this quintet of areas is apparently a useful first indicator of borrower merit.

Character assesses a willingness to settle and general integrity.

Capacity calculates the ability to generate the funds to repay.

Capital deduces overall net worth.

Collateral examines how the debt is secured.

Conditions questions loan terms and general environmental concerns.

Whether looking to obtain credit or a contract, there are critical criteria that you must ably satisfy. It’s striking how similar the deliberations of a customer could be to that of a lender.

A key component of solution selling is to uncover buying criteria. The best salespeople don’t only do this, they actually help set it. My earliest success back in the day came from working out which evaluation steps ensured I prevailed and suggesting they were the template for optimal buying.

As I helped people buy every day, whereas my prospects only bought once in a career, they tended to be grateful for decision framework ideas.

I suspect that especially if you’re selling to CFOs and their ilk, then adapting these well-known 5Cs could well prove a neat tactic. For instance,

Character could shine from relevant personal testimonials and comparable project success elsewhere.

Capacity can judge the ability to reap the astounding savings/makings you promise.

Capital can show the cost/benefit and overall value of your proposal.

Collateral can highlight the simple level of resource commitment and risk removal.

Conditions can pinpoint the ease of making it all happen and monitoring it.

You can easily evolve these for your very own winning Five Cs of Contractual Commitment.

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