Additional CFE Prep Flashcards
1
Q
what is used to determine the credit risk of a customer
A
Character- customer’s willingness to pay through professional reputation and history of debt repayment
Capacity- customer’s ability to pay
Capital/Collateral- customer’s net assets and worht
2
Q
What tools are used to determine the financing requirements and to distinguish between short term and long term needs
A
Forecasting
Pro-forma financial statements
