Case Study Credit Analysis – Identifying The Ideal Approach

The two most essential elements of a case study credit analysis are the relevant information and the underlying assumptions. If both are carefully researched and integrated, the analysis will offer you an overview of the subject in general.

The main issues that you should explore during the analysis are: How much credit does the borrower have available? Does he or she have any defaulted accounts?

Does the borrower’s payment history demonstrate a risk of default? Why do lenders prefer them?

How does this analysis contribute to any significant improvement? In short, it allows you to identify what potential lenders may be able to accomplish when they are dealing with borrowers who meet the criteria for your particular lender.

So you must understand what possible outcomes might occur if you take this approach? The response is to demonstrate the potential problems which will arise from applying this approach. Of course, the most important issue is always to understand the process properly.

The first step in all the activities we are discussing here is to obtain the proper data. The appropriate sources to acquire data include local banks, retail credit card companies, corporate lending sources, etc. It is a good idea to obtain these data independently so that you can make informed decisions.

Do not confuse this situation with obtaining the results of the process from a debt management specialist. A debt management specialist can provide you with the initial data which is needed to properly analyze the situation, but once you have the data you can move on to the next step.

The next step is to locate information about the borrowers which may be included in the credit report such as open accounts, late payments, or bankruptcy. You can then review and cross-reference the data with other sources.

The next step is to identify the best lender from among the debt management company and the major lender. Once you have identified the proper lender, the next step is to assess the possibilities and implications associated with each possible outcome.

For example, let’s assume that you want to see the financial statement for an individual. After reviewing the statements for all three major lenders, it would be important to determine the advantages and disadvantages that would likely result from the process.

First, how do you know that there are no inaccuracies in the actual statements? Second, will the actual loans be treated differently than the loans that have been paid on time?

Finally, what are the implications of actually having the loan. You will also need to evaluate the actual benefits of using a credit card program instead of another program.