1. Character: Quality of the entrepeneur and the venture
2. Circumstances: External factors (OT* of the SWOT**)
3. Capacity: Earning capacity
4. Coverage: Repayment capacity
5. Capital: % Equity
6. Collateral to secure repayment as protection
* Opportunities (O) and Threats (T) are considered to be external factors over which you have essentially no control.
** SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. By definition, Strengths (S) and Weaknesses (W) are considered to be internal factors over which you have some measure of control. Also, by definition, Opportunities (O) and Threats (T) are considered to be external factors over which you have essentially no control.
It is best when used as a guide, and not as a prescription. Successful businesses build on their strengths, correct their weakness and protect against internal weaknesses and external threats. They also keep a watch on their overall business environment and recognize and exploit new opportunities faster than its competitors.
SWOT Analysis helps in strategic planning in following manner:
a. It is a source of information for strategic planning.
b. Builds organization’s strengths.
c. Reverse its weaknesses.
d. Maximize its response to opportunities.
e. Overcome organization’s threats.
f. It helps in identifying core competencies of the firm.
g. It helps in setting of objectives for strategic planning.
h. It helps in knowing past, present and future so that by using past and current data, future plans can be chalked out.
http://managementstudyguide.com/swot-analysis.htm