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Qualitative.

Qualitative. The quantitative assessment should be supplemented by a qualitative subjective interpretation of the applicant’s creditworthiness. The subjective judgement. would cover aspects relating to the quality of management. Here, the references from other...

Quantitative

Quantitative   Assessment of the quantitative aspects is based on the factual information available from the financial statements, the past records of the fine, and on. The first step involved in this type of assessment is to prepare an Agillg Schedule of the accounts...

Trade References

Trade References These refer to the collection of information from finns with whom the  has dealings and who on the basis of their experience would vouch for the applicant. Credit Bureau Reports Finally, specialist credit bureau reports from organizations...

Financial Statements

Financial Statements One external source of credit information is the published financial state merits. that is. the balance sheet and the profit and loss account. The financial statements contain verv useful information They throw light on an applicant’s...

Obtaining Credit Information.

Obtaining Credit Information. The first step in credit analysis Is obtaining credit information on which to base the evaluation of a customer. The sources of information, broadly speaking, are. Internal and (ii) external. Internal Usually, firms require their...

Bad Debt Expenses

Bad Debt Expenses Another factor which is expected to be affected by changes in the credit . standards is bad debt (default) expenses. They can he expected to increase with credit standards and decrease if credit standards become more restrictive. Credit Analysis...