Question

HOW CAN THE 5 C'S OF FINANCING: CHARACTER, CAPACITY,CAPITAL, CONDITIONS,COLLATERAL BE USED IN A VIDEO TECHNOLOGY CONFERENCING BUSINESS.

Answer 1

5C'S of Financing which are generally used for lending of credit like character along with capacity and capital, condition along with collateral can be used in the video conferencing business in order to lend money to various borrowers in video conferencing industry.

A. These factors of credits will be helping the lenders to determine the ability of the borrowers in order to repay their overall amount of loan so before providing these video conferencing players with any kind of loan the bankers will be trying to assess upon the overall capacity of the business in order to maximize and expand itself and it will be trying to also understand the condition of these businesses because these businesses are mostly carried up on their video conferencing platforms and they will be very hard to analyse because they are not having the physical presence to a large extent and hence companies should be highly adequate in order to analyse their credit worthiness using the 5 C's

B. these five conditions of credit can also be applied to video conferencing industry by modifying it to certain extent and applying it in the context of the video conferencing industry by establishment of the proper fund which has been used by the promoter in its own business in order to determine the ability of the promoter to take risk in video conferencing business

C. It will establish all such digital proceedure in order to determine whether the company is having a better effective creditworthiness which can be sustained and survived over a long period of time and help in repairing with the loan.

D. These credit conditions are also helpful to determine the ability of the business to repay their loan and lenders will also help themself in order to determine the best player in the video conferencing industry who are having the higher creditworthiness and they are going to fix the conditions accordingly for their loan.