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Financing and Growing Your Business Workshop Focuses Businesses on the 5 C's

Posted on 3/5/2015 by Ray Lamboy in LAEDA News

Camden, NJ - The Rutgers Small Business Development Center (RUSBDC) in partnership with LAEDA presented the Financing and Growing Your Business workshop at LAEDA's offices on Wednesday 3/25/15. Clarence Fullard, the Director of the SBDC explained the lending process and the importance of the 5 C's.

The 5 C's stand for Character, Capacity, Capital, Collateral and Conditions.  Chief among these is Character.  Mr. Fullard walked attendees through the components of the charactrer factor in the lending decisions.  The three key factors for character are 1) personal credit history, 2) personal reliability and 3) a lender's impression of you.  

Personal credit history is important, it demonstrates one's track record as a financially responsible individual and informs a lender about an individuals reliability and shapes his or her impression of the borrower.  Acceptable credit scores post 2008 range from 600 to 659, with good credit being in the 660 - 720 range.  Strong credit is considered in the 720 and above range.

Mr. Fillard took attendees through the other C's and explained the loan application process.  He emphasized the importance of having a business plan and knowing it inside and out.

The Rutgers University Camden - Small Business Development Center is key partner of LAEDA and its work with emerging entrepreneurs and the small business community here in Camden.  To learn more about the RU-SBDC visit - www.rsbdc.org.