Note that the above mentioned bank loans have assets as the basis of the loans. Those assets serve as collateral. Character deals with the owners' credibility and credit worthiness. Capacity deals with the availability of necessary resources to make the venture successful. Capital deals with the owners' financial contribution and vested interest in the project.
Conditions deal with the general out look of the business, the industry, and the economy as a whole.
It also deals with the entrepreneurs ability to abide by the terms of the loan applied for. Private Loans Private loans include loans from friends and family. Such loans must be dealt with cautiously. Simple contracts should be drawn out for such transactions. The terms and conditions of the loan should be spelled out.