Respuesta :
The best method for lenders to determine the borrowing conditions for a customer is by examining the customer's credit report by using five Cs of credit method.
Explanation
Lenders before availing loans go through customer's financial documents like credit reports, credit scores, income statements, and other documents to show the customer's financial background.
The fives Cs of credit helps in measuring the financial worthiness of potential lenders. The five Cs are
· Character
· Capacity
· Collateral
· Capital
· Condition
This method gives quality and quantity measures by which a customer can rely on borrowing.
