You Are Seldom Alone When Financing a Business

Published: May 12, 2004

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Conditions is one of the 5 C's of credit. The others are Character, Capacity, Collateral and Capital.

Conditions can refer to business and marketing environments. Most are intangible but, nevertheless, very real.

Forces influencing the behavior of customers and prospective customers.
General economic conditions that affect your business or marketplace.
Reaction to your marketing initiatives from competitors.
Unknown initiatives being planned by your competitors.
Possible legislation or government regulations under consideration.
Your existing liabilities and commitments.

Conditions can also refer to contractual obligations in existing contracts.

These are usually found in the Terms and Conditions of most contracts.
It includes the conditions and restrictions in the loan agreement under negotiation.

Many of these Conditions are beyond your control. You may be tempted to ignore them hoping the lender will do the same. That may work but, it is probably best to address them so you can mitigate them in your favor. At least, you demonstrate to the lender that you are cognizant and prepared.

Remain acutely aware of who you are, what you are and where you are within your marketplace.

Stories

Stories from members will add great value to these maxims

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Outcomes

Reduces the number and magnitude of surprises.
Propagates contingency plans.
Adds perspective to your overall planning.

You Are Seldom Alone When Financing a Business

Application

Stories

Outcomes

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