Question

Please advise the following people what is the best source of financing. Also, explain the strengths and weaknesses of the borrower's ability to get loan based on 5 C's of credit: Mary has been in the construction business for 3 years. The business has averaged $120,000 in profits each year. She is seeking $250,000 to purchase new equipment. Her credit score is 650. She also has a house valued at $350,000 with outstanding mortgage of $200,000. Mary over 20 years of experience in the business. Mark is seeking $10,000 to start his graphic design business. His credit score is 630 and he has no personal assets.

Answer 1

Inthis Moy has succe ssful business tack YCC01d u);th average t),20,000 of-annual in the bugness. Her oediescose i 650 and such ei scove is Const desed ー>"Then, Mooy should go tor.secused loa n eomk uke house put as colls tezal be difficult Gel廾ng such laan Shouldn't given hes succespal uness vecood, Pspae of loan which is buyin the houge es Colla teral equipment and 5 es-of-CreditI auhty to worthiness of Masy to epay → identify-_chedit back the loan of Ma of sepaying loans in past ①느ou becaue o.p loco Credit SCoồe of 650 which might be dug to Ele face eld Ma mut have cefaulted in the post onome loan c Capacity-Mays ab lty to sepy loan

tith be couge ma does have houge aS Collaeal to sell off in Case of defoule Purchase of eiPment itikely to pove the bug) ness capacty/oPesrodt Tong and Contol biute to ex taa poftes and bepayment Shouldnt be a pro blen Capital Amount Contarbuted by bobboue towasd investmen e G Limi ted information avatlable in the Case to Comment cwhe thes she is Conbibui any mount Pocket touwosds th bugness m her own W Collateral Asset secured with tre leudes becaue Mon ouge ag colle tesaland i case of default in repayment of loan/ the Condittonss oud Condt Erong foa ecauge the loa is not ged ank could Sell oft the loan to & ecover loan nvetment specific asrees to be ugedin t buplnes and omance.

Mork has a csedtt scose o 630 aud Such Score belocw 650 s Cous'ide sed POARso he dloes nt have an assets to be ged g collatesal and Phug Common Souơcep of finance Mees oans bon ks, government goants 0 nn etc.wont be Posst ble should go f。γ ao-aking capreal (oan m bank De to Poos Credit Scave ond no Collateral, bonk ight Charge a high rate of interet ⑦ Character- Credit history of Ma2K of depaying loans in past ⑦ Loca because of low Coedit SC25 eof 630 which might be due to the that Pas on Some Othes loan Mark muse have de faulted in the

Mark's abiQYEy torepay loan ①Low becawernað K does not. hGYea44 collatesal to sell off in case of defal algo not a salazted tndividual He and bhu income not havtna any tiel monthlg (İI) His Capacit to (Pcy depende onsaccess esign sgine toward investment any amourt on his clown pocket to bigey Colla JeeAsset secaved wiey the l en dos Dムmited infomationg In the (ase to Comment ⓘboo, becaufe Mazk, does not have-and oso nak asse#5.to be put as Colladeðal ⑦ Conditions- Term8 a loan investment specific assets tke home bu instead it is beng aged fos Stah s uncertain