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Credit Process: The Credit Decision

The credit decision. We have now seen a reasonable amount of information on Willy Whale Inc, our friendly, next-door stuffed toys manufacturers and distributor. A credit memorandum using the same information has been prepared and presented before the loan committee. It is now time to

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Preparing credit proposals and memos

Preparing Credit proposals and credit memo. Continuing with our previous post on credit culture and information gathering requirements we share our list of required information with Willy Whale.  Willy Whale sends us the following information. Exhibit One is the 5 year consolidated balance sheet Exhibit Two is

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The context for credit risk analysis

The context for credit risk analysis Financial institutions and investors make money by putting capital at risk. The underlying idea is fairly simple – returns from this exercise will not just compensate them for bearing the risk but will also allow the original capital base

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Credit Process: Lending products

Lending Products Let’s review the list of products available in financial markets to meet the lending needs of a business. An understanding of customer needs and how those needs are met is important before we get into now credit analysis works. Commercial Banks, Institutional Investors, private


Credit Analysis Mindset

Credit Analysis mindset As a credit analyst you are tasked with answering a few simple questions on every case that is assigned to you: Why does the client need the additional capacity provided by the credit line? How strong is this relationships and what signals