Credit Analyst

Overview

Who is Credit Analyst?

Credit analysis is a speciality of financial risk analysis. It involves analyzing the creditworthiness of the individuals or companies that seek out credits or loans. The credit analyst, also known as a credit risk analyst, assesses the financial and credit history of the potential follower and their financial and economic conditions to determine whether they would be able to repay. Then, the credit analyst concludes their investigation to approve or disapprove the credit, to increase or decrease them.

Typical day at work

What does Credit Analyst do?

Credit analysis is a subset of financial risk assessment. Credit analysts (a.k.a. credit risk analysts) are tasked with assessing and evaluating companies' risk in making financial loans proposals to retail and commercial customers.

Sometimes they may be responsible for providing expert guidance on credit risks linked with large-scale corporate lending schemes, which involve millions and millions of pounds.

They review and analyze financial statements, annual reports, management accounts, profit and loss statements, cash and asset inventories, financial data updates from Reuters, and other relevant information made available by market research agencies.

• To review credit applications.
• To converse with the clients to collect information regarding their financial and credit transactions, liabilities, assets etc.
• To gather information and evaluate the client's position using financial ratios and other statistical techniques.
• To determine the credit limit that could benefit them as well as guarantee the repayment along with the generation of loan terms for the borrower based on the research conducted.
• To refuse the credit if the statistical data proves that the probability of repayment is low.
• To produce a report regarding the extent of risk involved in lending money to clients.
• To help the supply chain and marketing department in financial management make payments on time,  reduce the risk of a customer dispute, credit exposure etc.
• To be constantly updated about legal market risk and compliance issues.
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• To make suggestions in improving the procedural or policy changes.
• To establish new credit limits based on the data evaluations and credit policies.
• To review the existing clients regarding the credit details.
• To resolve credit issues, if any.

Abilities & aptitude needed

What are the skills, abilities & aptitude needed to become Credit Analyst?

The job profile and responsibilities involved a considerable amount of money, and any information being overlooked would prove very costly. Thus attention to detail is the primary soft skill required by the employee. They must also have adequate knowledge regarding finance, statistics and good IT skills to analyze the situation and draw concrete conclusions from them. The results of the observations and evaluations must be communicated to the clients as well as the employee's company, which would require good written and oral communication skills. The research results are often presented before a panel or submitted to them in the form of a written document. The employee must be able to learn every new day. To speak confidently to a client, the employee must be knowledgeable about the industry of the client and their strengths and challenges faced by them. They must possess the ability to work on multiple projects simultaneously and prioritize them appropriately.

Courses

Which course I can pursue?