CAMPARI is how bankers use the Canons of Lending to assess whether they should lend money or not.
It stands for:
Character – can you trust someone? Have they got a good record, for example of repaying borrowed money previously?
Ability – what track record do you have, and how can you demonstrate it?
Margin – the least important to the bank believe it or not, but there mustbe something in it for them
Purpose – why do they want to borrow the money, and is it structured in a sensible way?
Amount – how much do they want, but also how much in total is being spent – how much of the borrowers own money is being put it?
Repayment – how will it be repaid and when? How can this be demonstrated?
Insurance – what happens if something goes wrong? This may not necessarily mean an insurance policy, but could include providing some security – a Directors’ guarantee is commonplace for small limited companies.
It stands for:
Character – can you trust someone? Have they got a good record, for example of repaying borrowed money previously?
Ability – what track record do you have, and how can you demonstrate it?
Margin – the least important to the bank believe it or not, but there mustbe something in it for them
Purpose – why do they want to borrow the money, and is it structured in a sensible way?
Amount – how much do they want, but also how much in total is being spent – how much of the borrowers own money is being put it?
Repayment – how will it be repaid and when? How can this be demonstrated?
Insurance – what happens if something goes wrong? This may not necessarily mean an insurance policy, but could include providing some security – a Directors’ guarantee is commonplace for small limited companies.
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