Which of the following is NOT one of the Five Cs of Credit?

The concept of the Five Cs of Credit is essential for lenders when evaluating a borrower's creditworthiness and assessing the risk associated with lending. The Five Cs are Character, Capacity, Capital, Collateral, and Conditions. Each plays a critical role in understanding the applicant's financial situation and ability to repay loans.

Character refers to the borrower's reputation or credit history, which helps lenders gauge reliability. Capacity assesses the borrower's ability to repay based on income and existing debts. Capital evaluates the borrower's personal investment or net worth, which can indicate their commitment to a loan. Collateral involves assets that can secure a loan, providing the lender with assurance in case of default. Conditions consider the external environment affecting the loan, including economic factors and the purpose of the loan.

Capitalization, while a relevant financial concept in other contexts, is not one of the Five Cs of Credit. Capitalization typically refers to the way a business finances its operations through debt and equity or the total value of a company in financial markets. It does not directly pertain to the assessment of creditworthiness in the same way that the other four concepts do. Thus, it is not included in the Five Cs framework used by lenders.