CMCP CH5 UPDATED ACTUAL Questions
and CORRECT Answers
Credit Application - CORRECT ANSWER - -is the initial action taken by the Credit
Department when it begins to carry out its duties.
-must be available for use by a credit department's potential clients or customers.
-Every credit expert understands the significance of a carefully considered, educational, and
correctly completed (signed)
Credit Card
Mortgage
Personal Loan
Business Loan - CORRECT ANSWER - Common types of credit applications
Credit card - CORRECT ANSWER - applications ask for the borrower's name, address,
and social security number, among other basic personal data.
Mortgage - CORRECT ANSWER - applications need comprehensive details about a
borrower's earnings, job, assets, and liabilities.
Personal loan - CORRECT ANSWER - applications typically call for financial and
personal data.
business loans - CORRECT ANSWER - Applications need comprehensive details about a
borrower's company, such as cash flow forecasts, business plans, and financial accounts.
Commercial loan - CORRECT ANSWER - is a financial agreement where a business
borrows money from a bank or lending institution to meet its funding needs.
, Credit Lines - CORRECT ANSWER - a line of credit is a kind of business loan that gives
individuals or firms access to a predetermined sum, or "credit limit."
Term Loan - CORRECT ANSWER - is a kind of long-term business loan that pays out a
large amount of money all at once.
Equipment Financing - CORRECT ANSWER - one can borrow a certain amount to buy
machinery, using the equipment as security.
Commercial Real Estate Loans: - CORRECT ANSWER - can be used to purchase
properties as investments or as business space.
SME Loans - CORRECT ANSWER - The program offers both term loans and revolving
credit lines, also known as short-term loans.
3.2.1 Step 1: Determining Financial Needs
3.2.2 Step 2: Gathering Financial Information
3.2.3 Step 3: Evaluating Credit History
3.2.4 Step 4: Selecting Loan Type
3.2.5 Step 5: Submitting the Application
3.2.6 Step 6: Underwriting and Evaluation
3.2.7 Step 7: Loan Approval and Terms
3.2.8 Step 8: Final Approval Stage
3.2.9 Step 9: Disbursement and Repayment - CORRECT ANSWER - Step-by-step
application process
A certified photocopy of its trade name or style registered with the Bureau of Domestic Trade
Mayor's Permit
License to engage in business issued by the City or Municipality Income
Tax Returns for the preceding year and official receipt of payment
and CORRECT Answers
Credit Application - CORRECT ANSWER - -is the initial action taken by the Credit
Department when it begins to carry out its duties.
-must be available for use by a credit department's potential clients or customers.
-Every credit expert understands the significance of a carefully considered, educational, and
correctly completed (signed)
Credit Card
Mortgage
Personal Loan
Business Loan - CORRECT ANSWER - Common types of credit applications
Credit card - CORRECT ANSWER - applications ask for the borrower's name, address,
and social security number, among other basic personal data.
Mortgage - CORRECT ANSWER - applications need comprehensive details about a
borrower's earnings, job, assets, and liabilities.
Personal loan - CORRECT ANSWER - applications typically call for financial and
personal data.
business loans - CORRECT ANSWER - Applications need comprehensive details about a
borrower's company, such as cash flow forecasts, business plans, and financial accounts.
Commercial loan - CORRECT ANSWER - is a financial agreement where a business
borrows money from a bank or lending institution to meet its funding needs.
, Credit Lines - CORRECT ANSWER - a line of credit is a kind of business loan that gives
individuals or firms access to a predetermined sum, or "credit limit."
Term Loan - CORRECT ANSWER - is a kind of long-term business loan that pays out a
large amount of money all at once.
Equipment Financing - CORRECT ANSWER - one can borrow a certain amount to buy
machinery, using the equipment as security.
Commercial Real Estate Loans: - CORRECT ANSWER - can be used to purchase
properties as investments or as business space.
SME Loans - CORRECT ANSWER - The program offers both term loans and revolving
credit lines, also known as short-term loans.
3.2.1 Step 1: Determining Financial Needs
3.2.2 Step 2: Gathering Financial Information
3.2.3 Step 3: Evaluating Credit History
3.2.4 Step 4: Selecting Loan Type
3.2.5 Step 5: Submitting the Application
3.2.6 Step 6: Underwriting and Evaluation
3.2.7 Step 7: Loan Approval and Terms
3.2.8 Step 8: Final Approval Stage
3.2.9 Step 9: Disbursement and Repayment - CORRECT ANSWER - Step-by-step
application process
A certified photocopy of its trade name or style registered with the Bureau of Domestic Trade
Mayor's Permit
License to engage in business issued by the City or Municipality Income
Tax Returns for the preceding year and official receipt of payment
