Describe what the 5 C's are for the company Lululemon. Define Lululemon's character, capacity or cash flow, capital, conditions and collateral using the definitions listed below.

Character: It gives an idea about the creditworthiness of the borrower, that the commitment factor or the past records about paying back the loan in time.

Capacity or Cash Flow: The capacity factor is the ability of the borrower to pay back the loan. The cash flows that are generated by the borrowing company are required to be known by the company that is lending money in order to know and analyze and get an idea whether the money can be repaid by the borrower.

Capital: It is the amount of the money that is invested into the business to start the business process. It is a useful piece of information since it speaks about creditworthiness of the borrower. A borrower who has invested some amount of money for starting business is more financially stable than someone who has borrowed the entire money to start the business.

Conditions: The state of the business, whether the current stage of the business is profitable or loss making has to be known before lending out money to them.

Collateral: The collateral guarantees are also an essential part of the loan sanctioning process. The borrowers are to provide a backup to the lenders in case they are not able to payback the loans.