How lenders assess credit: the five Cs and how to prepare
Character, capacity, capital, collateral and conditions — the framework behind most credit decisions, and what you can prepare for each.
Credit Assessment Frameworks
Resources
Practical guides for founders and CFOs, the latest from Fab Capital, and answers to the questions we hear most.
Knowledge Centre
The financing landscape continues to evolve with changing regulations, lender preferences and market conditions. Our Knowledge Centre provides practical insights to help founders, CFOs and business owners make informed capital decisions.
Debt Structuring
Venture debt vs equity: when non-dilutive capital makes sense
Venture debt can extend runway between equity rounds without giving up ownership. It is not right for every startup — here is how to tell.
Financial Ratios
Five financial ratios lenders check first — and what good looks like
DSCR, leverage, interest cover, current ratio and the TOL/TNW ratio drive most credit decisions. A plain-English guide to each.
Working Capital Management
The working capital cycle, explained: how to measure it and shorten it
Your cash conversion cycle tells lenders how long money is tied up in day-to-day operations. Here is how to calculate it and the levers that shorten it.
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News Room
Announcements, milestones and updates from Fab Capital.
Fab Capital launches its new website and online application
Businesses can now check eligibility, calculate EMIs, read our Knowledge Centre and send their requirement to a capital specialist online.
Read moreFrequently asked questions
1. What is Fab Capital?
Fab Capital is a next-generation, technology-enabled debt marketplace platform designed to empower capital access to start-ups and growth-stage enterprises. The company operates as a Lending Distribution Partner (LDP), collaborating with leading public sector banks, private banks, and NBFCs across India to deliver structured debt solutions for start-ups and SMEs.
2. Is Fab Capital an NBFC?
No. Fab Capital is not an NBFC and does not lend from its own balance sheet. We work as a Lending Distribution Partner with RBI-regulated banks and NBFCs. Every loan is assessed, sanctioned and disbursed by the lending partner under its own terms.
3. How Fab Capital works?
- You share your requirement and basic financials.
- Our capital specialist assesses your profile and structures the right debt product.
- We present your case to the lenders best suited to it.
- You compare the offers and choose one. The lender sanctions and disburses, and we support you through documentation.
4. What types of capital solutions does Fab Capital facilitate?
Working capital loans, term loans, venture debt, trade finance (letters of credit, bill discounting and supply chain finance), invoice financing, revenue-based finance and structured credit for larger transactions.
5. How is Fab Capital differentiated from conventional lending channels?
One application reaches several lenders, so you compare real offers instead of approaching banks one by one. A dedicated specialist structures your case before it goes out, which improves approval odds and terms, and our technology shortens the time from enquiry to sanction.
6. What role does technology play in Fab Capital's model?
Technology collects documents securely, analyses bank statements and GST data, matches your profile to each lender's criteria and tracks every application in real time. That leaves our team free to focus on structuring and negotiation.
7. Who Are the Major Lenders (Partners) on the Platform?
We work with public sector banks, private banks and NBFCs across India. The lenders best suited to your sector, ticket size and stage are shared with you once we review your requirement.
8. What principles govern Fab Capital's capital advisory approach?
Borrower first: we recommend the right amount and structure of debt for your business, not the largest loan available. We are transparent about terms and fees, keep your information confidential and only share it with lenders you approve.
9. How does Fab Capital maintain transparency in transactions?
Every lender offer is shared with you in writing, including interest rate, fees and covenants. Our own fee, if any, is agreed with you in writing before we start. There are no hidden charges.
10. Does Fab Capital offer end-to-end capital lifecycle support?
Yes. We support you from the first assessment through sanction and disbursement, and afterwards with renewals, limit enhancements and refinancing as your business grows.
11. What outcomes can companies expect when working with Fab Capital?
Faster access to capital, better terms through lender competition, less equity dilution and a long-term partner for future funding needs.
12. Types of Loans
- Working capital loans for inventory, payroll and day-to-day operations
- Term loans for capex, expansion and equipment
- Venture debt for VC-backed start-ups extending their runway
- Trade finance for imports, exports and supplier payments
- Invoice financing against outstanding receivables
- Revenue-based finance repaid as a share of monthly sales
Still have a question?
A capital specialist will call you back, usually within one business day.