Introduction to Credit Analysis

Introduction to Credit Analysis

Nick Beeson

35 years: Credit & banking

Credit analysis is the process of determining whether a counterparty will honour its obligations in a transaction. It involves balancing what is gained if they meet their obligation against how much is lost if they do not. To make these assessments, there are a plethora of factors to be taken into account. In this first video of the series, Nick specifically covers three accounts - The Balance Sheet, the Profit and Loss and Cashflow - as factors of a credit analysis.  

Credit analysis is the process of determining whether a counterparty will honour its obligations in a transaction. It involves balancing what is gained if they meet their obligation against how much is lost if they do not. To make these assessments, there are a plethora of factors to be taken into account. In this first video of the series, Nick specifically covers three accounts - The Balance Sheet, the Profit and Loss and Cashflow - as factors of a credit analysis.  

Join now to start learning today

Finance Unlocked is the video learning platform built for finance professionals.

This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.

Introduction to Credit Analysis

8 mins 39 secs

Overview

In order to successfully judge whether or not a counterparty will honour its obligations in a transaction, we must obtain a picture of them utilising various information sources that we have available. This includes an analysis of company accounts, balance sheets, profit & loss and cash flows.

Key learning objectives:

  • Define credit analysis

  • Pinpoint the basics of credit analysis

  • Identify the 3 measures of credit analysis and how each of them work

Join now to watch

This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.

Summary
logo-animationlogo-animationlogo-animation

Join now to watch

This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.

Expert
Nick Beeson

Nick Beeson

Nick has nearly 35 years of experience in banking. He joined his current employer, Lloyds, in 2005 as Credit Director for Loan Trading. Nick has since undertaken a number of Credit Roles for the Bank. Nick has also worked in education and has lectured for numerous institutions.

Related videos