Five C’s of Credit—Capacity, Conditions, Collateral, Capital, and Character
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Speaker : DEV STRISCHEK
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When : Wednesday, May 07, 2025
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Time : 01 : 00 PM EST
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A frequent speaker, instructor, advisor and writer on credit risk and commercial banking topics and issues, Dev is principal of Devon Risk Advisory Group and engages in consulting, speaking and training on a wide range of risk, credit, and lending topics. As former SVP and senior credit policy officer at SunTrust Bank, Atlanta, he was responsible for developing, implementing, and administering credit policies for SunTrust's wholesale lines of business--commercial, commercial real estate, corporate investment banking, capital markets, business banking and private wealth management. He also spent three years as managing director and credit approver in SunTrust's Florida commercial lending and corporate investment banking areas, respectively. Prior to SunTrust, Dev was chief credit officer for Barnett Bank's Palm Beach market. Besides stints at other banks in Florida, Kansas City, and Ohio, Dev's experiences outside of banking include CFO of a Honolulu construction company, combat engineer officer in the U.S. Army, and college economics instructor in Hawaii, Missouri, and Florida. A graduate of Ohio State University and the ABA Stonier Graduate School of Banking, he earned his M.B.A. from the University of Hawaii.
Dev serves as an instructor in the Stonier Graduate School of Banking, the Southwestern Graduate School of Banking, and the American Bankers Association's (ABA) Commercial Lending. His school, conference, and workshop audiences have included participants drawn from the ABA, RMA, OCC, Federal Reserve, FDIC, FFIEC, SBA, the Institute of Management Accountants (IMA) and the AICPA.
Dev has written
about credit risk management, financial analysis and related subjects
for the Risk Management Association's RMA Journal, and other business
professional journals. He is the author of Analyzing Construction
Contractors and its related RMA workshop. A past national chair of RMA
and former Florida Chapter president, Dev serves as a member of the RMA
Journal's advisory board, and he also serves on the advisory board of
the Atlanta Chapter of the Professional Risk Managers' International
Association (PRMIA), and he has consulted on credit risk issues with
banks in Morocco, Egypt, and Angola through the US State Department's
Financial Service Volunteer Corps (FSVC). He also served on the Private
Company Council (PCC) of the Financial Accounting Standards Board
(FASB); the PCC reviews current and proposed generally accepted
principles (GAAP) and recommends revisions that simplify their use for
privately held organizations.
By evaluating each of the Five Cs, bankers can provide valuable advice to borrowers on how to improve their creditworthiness. This can help borrowers to secure financing in the future and build a strong financial foundation for their business.
This simple credit model is simple to understand and easy to use. The speaker explains how lenders assess each of these factors and provides practical tips for borrowers to improve their creditworthiness. Attend the session to see the big picture for credit analysis and underwriting.
Learning Objectives
- The first four C’s - capacity, conditions, collateral, and character evaluate a borrower’s ability to repay, but character forces the lender to examine closely the borrower’s willingness to repay
- Learn how to employ the first four C’s to analyze repayment ability
- Learn how to use the fifth C- character - to judge a borrower’s willingness to repay
Areas Covered
- Introduction to the Five Cs of Commercial Credit
- Explanation of each of the Five Cs: Character, Capacity, Capital, Collateral, and Conditions
- Capacity measured by the ability to repay from cash flow
- Conditions evaluated in terms of how borrowing needs change over the business cycle and what makes some industries more vulnerable to downturns than others
- Collateral analysis in terms of relative liquidation values
- Capacity considered in terms of the borrower’s equity cushion and the degree of relative leverage possible
- Character assessed in terms of willingness to repay as evidenced by payment history as well as tips for fraud prevention
Who Should Attend
- Small business owners
- Credit analysts
- Loan underwriters, Loan review officers
- Commercial bankers, Credit department managers
- Senior lenders, Chief credit officers, Credit analysts
- Credit managers, Credit risk managers
- Risk managers, Enterprise risk managers
- Chief credit officers, Senior lending officer
- Bank director, Chief executive officer
- President, Board Chairman
- Financial professionals, such as accountants, bookkeepers, and financial advisors
- Entrepreneurs who are starting a new business and need financing
Why Should You Attend
By evaluating each of the Five Cs, bankers can provide valuable advice to borrowers on how to improve their creditworthiness. This can help borrowers to secure financing in the future and build a strong financial foundation for their business.
Bankers have relied on the 5 C’s of credit - capacity, conditions, collateral, capital, and character for many years, but what do these terms mean, and how do lenders use them to determine whether a potential borrower is creditworthy?
This simple credit model is simple to understand and easy to use. The speaker explains how lenders assess these factors and provides practical tips for borrowers to improve their creditworthiness. Attend the session to see the big picture for credit analysis and underwriting.
Topic Background
The Five Cs of Credit is a framework used by commercial lenders to assess the creditworthiness of businesses. By understanding the Five Cs of Commercial Credit, bankers can evaluate the risk in lending to a particular borrower and make informed lending decisions. This helps banks manage their risk exposure and ensure they are lending responsibly.
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$160.00
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