What are the 5 major criteria used by bankers in granting business loans (known as 5 C’s)? Now, tell me why each “C” important? As a banker would you trade-off a “low-low score” in one of the C’s for a “high-high score” in another criteria? If not, select 2 C’s to make the argument.
In your own words, describe the difference between equity funding and debt financing. Do you have preference for one or the other? Why? Explain in detail.