Those 5 Circles Are Back…

How quickly these Olympic times come around, with a bagful of new names and new records to match. There are also other “Circles” we should remember if we want a gold medal performance, The 5 C’s of Credit.

Does your Customer make the team? See if they have the necessary mettle and ask these questions:-



  • Will the Customer pay?
  • Do they have a willingness – an honest intention – to pay?
  • What is the Customer’s bare promise worth?
  • What is the history of dealing with other creditors?


  • Does the Customer have the means to raise funds for ongoing business?
  • Can they meet their commitments now and in the future?
  • What is the trading pattern of the business?
  • Can they pay according to your terms?


  • Does the Customer have sufficient assets to cover the debt?
  • What is the trading history of the business?
  • Can the Customer “ever” pay?


  • Is there some asset over which the Customer can give security? E.g. property, business assets etc
  • Is there a 3rd party who can guarantee payment?
  • Bank Guarantee?


  • What are the economic conditions in the specific industry of the Customer?
  • Is the Customer’s business poorly managed?
  • Is the business seasonal? E.g. fashion
  • Is obsolescence an issue? E.g. Technology


For more information, contact Terry Ledlin, Special Counsel


Direct line:        02-8488-3388