Credit Committee Red Flags Deck
Recall practical Five Cs prompts that prevent weak microloan approvals.
Capacity trap Client has clean history but copied cash-flow notes. What should committee compare? A renewal is a new credit decision. Objection The client has collateral, so the larger amount is covered. Committee is using pledged equipment to justify weak affordability. Say this Collateral is secondary recovery. Show me the ordinary cash that repays the installment before we rely on the asset. Collateral comfort can hide a loan that only works after client harm. It restores capacity as the first repayment source. Conditions What conditions question should every microenterprise renewal answer? What has changed since the last cycle? Supplier terms,…
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