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Marketing Management Report- Common Wealth Bank

   

Added on  2020-04-01

4 Pages772 Words30 Views
Student’s Last Name 1Marketing ManagementBy (Name)CourseProfessorUniversityDate
Marketing Management Report- Common Wealth Bank_1
Student’s Last Name 2Introduction The five Cs refer to a system of credit utilized by lenders, in this case, the Common Wealth Bank, to evaluate the creditworthiness of potential borrowers. The system works by assessing five attributes of the borrowers and features of the loan in an attempt to weigh the likelihood of default (Bryant, 2012, pp. 120). The five Cs include capacity, character, collateral, capital, and conditions. The five Cs criterion of assessing borrowers adopts both the quantitativeand qualitative measures. The Common Wealth Bank collects the five Cs before releasing loans to potential borrowers.The five CsThe character refers to the credit history of a borrower. The bank is keen to follow the track record or reputation of borrowers when it comes to repaying debts. The Common Wealth Bank gets this information from the borrower’s credit reports which are generated by credit bureaus such as the TransUnion, Experian, and Experian (Duarte, Siegel, and Young, 2012, pp. 2470). The credit reports give details about the amount borrowed in the past, whether the borrowers repaid their loans on time and whether they have outstanding loans. Other types of information contained in the reports include liens and bankruptcies, collection accounts, and judgments.The second C refers to the capacity. The Common Wealth Bank gauges the borrower’s potential or ability to repay the requested loan. The tool used to determine the borrower’s capacity compares the income against the recurring debts and gauging the borrower’s debt-to-income (DTI) ratio (Marqués, García, and Sánchez, 2012, pp. 10921). Other factors that are
Marketing Management Report- Common Wealth Bank_2

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