Credit Analysis of the Organization

               Individuals who grants credit has a major task and responsibility not only himself but to the economy and to the society. On this regard, there should be a thorough analysis and evaluation of credit risks for those who wants to avail a credit. There should be a credit rating on the person or organizations before they will be given approval on the facilities they want.

            Credit analysis is a broad idea. You never focus on one aspects but you need to consider various and important details that could affect the credit position of a person in the future. Having a financial analysis on different line of business.

            In credit analysis the first thing to do is to have credit information. There are principal sources of credit information you may obtain; first is from internal sources such as the records of the previous loans of the debtors; second, is the external sources of information. These sources could be found in different agencies that person is having a business transaction, records and others.

            Second, to have an interview with the debtor. Asking some important questions that could satisfy your requirements in granting the credit. Third, having an inspection, through this method you can identify and know the real person who are applying for a loan in your company. And fourth, is asking a copy of their financial statement. This important documents is indispensable in facilitating the loans to the debtors in order to attest its liquidity and capacity to pay the debts.