5 C's of Credit
What is Credit
Credit Basics
How to Choose a Lender
Banks, Merchants, and Other Lenders
100
Industry Issues, Nature of Customer Relationships, and Supply Risks
What is Conditions a business operates in.
100
A one-time loan which is repaid in a specific number of equal payments.
What is Installment Credit.
100
When you use credit you receive money, goods, or services in exchange for:
What is a promise to repay a sum of money at a future date.
100
Credit Requirements
Agriculture has high:
100
Three basic types of credit for farms/ranches.
What is short-term, intermediate-term, and long-term.
200
The last 'C' a lender will consider.
What is Character.
200
Convenience, sales, interest-free promotions, emergencies, identification, and enjoying the 'good life'.
What is Advantages of Credit.
200
Individuals should always evaluate if credit funding a: ______________ or a: __________________.
What is Want or a Need.
200
A long-term mortgage is used to finance what?
What is the purchase of land, buildings, and other improvements.
200
A land contract is what kind of sale?
What is Conditional.
300
You banker needs to certain your business generates enough _______ ________ to repay the loan you are requesting.
What is Cash Flow.
300
Paying off student loans quickly.
What is a way to establish good credit.
300
When using credit, instead of savings, to purchase an item, you will end up spending: _____________ because of: _____________.
What is More because of Interest and Fees.
300
A lender with permanence will:
What is be a stable source for credit.
300
Life Insurance Companies prefer loans that are large, well-secured, and: ______________ to: ___________________ in maturity.
What is Intermediate to Long-Term.
400
Collateral
What is a secondary source of repayment, used when there isn't sufficient cash flow.
400
$1 Trillion
What is the amount American's spend in credit on average every year.
400
As a general rule, what percentage of your total annual net income should you borrow?
What is 20%.
400
What is the wrong time to make a choice on lender?
What is on the first visit.
400
A loan to purchase feed, fertilizer, or a tractor are offered by which kind of lender?
What is Merchant or Dealer.
500
Another word for Equity.
What is Capital
500
When using credit, you are spending _____________ ________.
What is future income.
500
What information is included in the repayment terms of a Closed-End loan?
What is interest rate, monthly payment, and total number of payments.
500
What are the 5 essential things to consider when choosing a lender?
What is Reputation, Lending Policies, Permanence and Dependability, Ag Experience, and Service and services offered.
500
What are the four basic sources of credit for a farm/ranch?
What is Commerical Banks, Life Insurance Companies, Merchants and Dealers, and Individual Lenders.
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