The 5c factor analysis method consists of

The 5C factor analysis method is a method of analysis. It includes five aspects of the borrower's character, business ability, capital, asset collateral, and economic environment.

This method mainly analyzes the following five aspects of credit elements:

(1) Borrower character (Character). Borrowers are required to be honest and trustworthy, good business. Usually based on the past record combined with the status quo survey to analyze, including the business operator's age, culture, technical structure, compliance with the law, pioneering and leadership, whether or not to obtain honorary awards or disciplinary action, the spirit of unity and cooperation and organizational and management capabilities.

(2) Operating ability (Capacity). To analyze the production and operation ability and profitability of the borrowing enterprise, whether the management system is sound, whether the management means is advanced, whether the production and sales of products is normal, whether there is competitiveness in the market, whether the scale of operation and business strength is growing year by year, whether the financial situation is sound.

(3) capital (Capital). Enterprise capital is often a measure of the financial strength of the enterprise and the size of the loan amount of the determining factors, enterprise capital is strong, indicating that the enterprise has a strong material foundation and risk-resistant ability. Therefore, credit analysis must be investigated to understand the size of the enterprise capital and debt ratio, reflecting the enterprise assets or capital for the degree of protection of liabilities.

(4) Asset collateral (Collateral). Assets can be used as loan guarantees and collateral, and sometimes the application for loans can also be guaranteed by other enterprises. With collateralization, credit assets are secured. Credit analysis must analyze whether the collateralization procedures are complete. Are there any problems with the valuation and sale of the collateral, and is the guarantor's creditworthiness reliable.

(5) economic environment (Condition). The economic environment has a certain impact on the future development of enterprises, but also an important external factors affecting corporate credit. Credit analysis must analyze the enterprise's economic environment, including the enterprise's development prospects, industry development trends, changes in market demand, etc., to predict its impact on the operating efficiency of enterprises