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.
Introduction to Credit Analysis
8 mins 39 secs
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
Nick Beeson
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