The 5 C's of credit are the following:

• Character. Banks evaluate the experience and track record of the business owners and managers
in the industry.
• Capacity. Capacity refers to considering your other debts when determining the ability to repay
the loan.
• Capital. Capital refers to the value of your assets less your liabilities. In simple terms, capital
reflects to how much you own (for example, car, real estate, cash, and investments) minus how
much you owe.
• Collateral. Collateral refers to any asset of a borrower a lender can use to pay the debt if the borrower is unable pay back the loan.
• Conditions. Banks may evaluate the industry and competition as well as general economic conditions.

"Contract" is not one of these 5 C's.