CLFP Exam - Credit Process and
Financial Statement Exam Questions
and Answers 100% Pass
What applicant attributes are you trying to learn about when underwriting a deal? -
CORRECT ANSWER-1.) The desire to repay the debt
2.) the financial ability to make payments
3.) The reserves to withstand unexpected setbacks
What are the four (4) C's of Credit? - CORRECT ANSWER-1.) Character: the
desire to pay back debt
2.) Cash Flow: Ability to make payments
3.) Capital: Ability to withstand setbacks
4.) Collateral: Ability to liquidate to recover investment when the initial three (3)
C's fail
What are common credit criteria in the app only process? - CORRECT ANSWER-
1.) TIB
2.) Industry
,3.) Equipment type
4.) Bank Balances
5.) Personal Credit Reports
6.) Business Credit Reports
7.) Landlord rating
8.) Vendor quality
9.) Lease structure
10:) New/Used equipment
11.) Equipment location
12) Comp credit
13) SOS
14) References
Characteristics of App Only? - CORRECT ANSWER-1.) limited upfront
information (application)
2.) low-touch, high volume
3.) Credit scoring
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, What are common credit criteria of mid ticket credit process? - CORRECT
ANSWER-1.) TIB
2.) Principal's credit
3.) deal structure
4.) equipment type
5.) 2-3 years financial analysis (statements)
6.) background check
7) trade & bank references
How does Entity type impact underwriting? - CORRECT ANSWER-1) different
credit risks/considerations
2)different legal risks/considerations;
3) different documentation requirements
Describe a Sole Proprietorship? - CORRECT ANSWER-1.) An individual who
owns a business
2.) No legal requirements apart from business license
3.) Typically DBA or "doing business as"
4.) Don't file separate tax returns - 1040 Schedule C
5.) Tax Return: Income reported before owner draw/taxes
Financial Statement Exam Questions
and Answers 100% Pass
What applicant attributes are you trying to learn about when underwriting a deal? -
CORRECT ANSWER-1.) The desire to repay the debt
2.) the financial ability to make payments
3.) The reserves to withstand unexpected setbacks
What are the four (4) C's of Credit? - CORRECT ANSWER-1.) Character: the
desire to pay back debt
2.) Cash Flow: Ability to make payments
3.) Capital: Ability to withstand setbacks
4.) Collateral: Ability to liquidate to recover investment when the initial three (3)
C's fail
What are common credit criteria in the app only process? - CORRECT ANSWER-
1.) TIB
2.) Industry
,3.) Equipment type
4.) Bank Balances
5.) Personal Credit Reports
6.) Business Credit Reports
7.) Landlord rating
8.) Vendor quality
9.) Lease structure
10:) New/Used equipment
11.) Equipment location
12) Comp credit
13) SOS
14) References
Characteristics of App Only? - CORRECT ANSWER-1.) limited upfront
information (application)
2.) low-touch, high volume
3.) Credit scoring
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
, What are common credit criteria of mid ticket credit process? - CORRECT
ANSWER-1.) TIB
2.) Principal's credit
3.) deal structure
4.) equipment type
5.) 2-3 years financial analysis (statements)
6.) background check
7) trade & bank references
How does Entity type impact underwriting? - CORRECT ANSWER-1) different
credit risks/considerations
2)different legal risks/considerations;
3) different documentation requirements
Describe a Sole Proprietorship? - CORRECT ANSWER-1.) An individual who
owns a business
2.) No legal requirements apart from business license
3.) Typically DBA or "doing business as"
4.) Don't file separate tax returns - 1040 Schedule C
5.) Tax Return: Income reported before owner draw/taxes
