Let’s examine the last and most important of the 5 C’s of credit – Character.

CHARACTER (INTEGRITY) deserves more scrutiny from lenders, as it focuses on the borrower’s willingness to repay the loan. THUS it deserves the most weight!

Personal credit score and background check

  • It’s not hard to understand why investors want to invest with those who possess impeccable references and credentials.  This is where the character of the loan applicant comes in to play.
  • While the character card can be challenging to assess, a bank will carefully review business and personal credit reports, as well as communicate with vendors regarding a business owner’s dealings with them. 
  • Owners need to demonstrate that they are indeed effective leaders and can conduct themselves professionally in challenging times. 
  • Securing a business loan from a bank is based on trust, to a large extent.  Banks need to know that a business owner will act in good faith at all times to honor any commitments.