TheAliMan Wrote: ------------------------------------------------------- > Storko, refer to your level 2 cfa book 
lol, Am I the only here that shoves everything into short term memory?
Of the 4 Cs, the first one - Character - would the the most important for me. If anything feels shady about the management, never lend.
I work in corporate banking and we primarily focus on the following: 1) A fixed charge coverage ratio with the numerator starting with a cash flow adjusted EBITDAR and subtracting an estimate of maintenance capital expenditures (amount necessary to maintain the current level of revenues). The denominator includes rental expense and debt service payments. 2) Cash flow leverage 3) Operating liquidity 4) Management 5) Industry and competitive position We typically lend unsecured so collateral is not included above but it’s obviously something you want to look at if you have security. Seniority is also important to look at (ie, where in the capital structure you fall) as well as what kind of protections the covenants provide.
FICO can do no wrong