credit report
Post on 16-May-2015
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Credit Report
1 .Why we write a profile?
2. To whom?3. What should a profile contain?
Profile Components
• Name of Lessee / Request• Reference / Relationship with OLE• Terms Recommended• Shareholding structure• Management• Business Details• Financial Details and Comments• Bank Borrowings• Cash Flow• Recommendation
Before Starting
•Perpetrator Name•Reviewer Name•Date•New Lessee / Existing
Name of Lessee
• Name of Lessee / Group• Abbreviation
Request
• In house / Executive Committee• Specific limit / Revolving line• Assets brief• (Aggregate) Purchase cost
Route of Enquiry
• The reference.• Logic behind writing reference.• The main references available:• 1. Suppliers• 2. Existing Lessees• 3. Direct Approaches• 4. Others
1 .Suppliers
• Who is the supplier?
• What is he selling – Agent / Distributor?
• What is the history with OLE (HO / Alex)?
• What is the experience with lessee?
• What is the opinion about lessee?
• Additional Information if available…
2. Existing Lessee
• Who is the lessee?
• What is his internal grading?
• What is the relation?
• What is the opinion?
3. Direct App. / Others
• Why Directly Approached?
• What is the general reputation?
Relationship with OLE
• Lessee since …• Internal Grading.• Number of Total contracts / live / term.• Total Purchase Cost – Total Exposure• Paid up• Exposure Report
• What if recent existing lessee?
Terms Recommended
• Revolving / Specific• Asset Detail• Purchase Cost• Rent / Advance / Arrears• FEF / Documentation Charges• Total Exposure• Insurance• Guarantee
Capital Structure
• Legal Status• Date of establishment• Founder• Original paid in capital / Current• Capital Structure• Signers
Management
• Name / Age / Education / year• Experience• Successors if required
Business
• What is the business?• What is the products / Mix?• How is he selling / fleet?• Branches / locations• Customers / credit policy / export?• Suppliers / credit policy / import?• Number of employees
Location Visit
• Number of locations?• Who?• When?• Where?• What?
Financial Comments
• Sales / Gross Profit / Net Profit• Current Assets / Current Liabilities• Net Worth / Total Assets / Fixed Assets• Short / Long term loans• Any other major items• Current / STD/Equity• Sales Growth / GPM / NPM• Receivables / Inventory DOH
Sales
• What is Sales?• Sales Growth / Increase / Decrease• Why?• What is the projection / Why?
Profitability
• What is profitability / GPM / NPM• What is the fact• Why?• What is the projection / Why?
Current Assets / Liabilities
• What is current Assets / Liabilities• Receivables / Inventory DOH• What is the fact?• Why?• What is the projection / Why?
• What is net worth?• What is the fact?• Comment?• Projection / Why? If required
Net Worth
Liquidity & Solvency Ratios
• What is the ratios used?• What is the fact• Comment?• Projection / Why? If required
Bank Borrowings
• Banks dealing with?• Bank reference / Statement of acct.• Maturities?• Limits granted?• Utilization?• Collateral• Interest (if available)
Cash Generation
• How it is done?
•RECOMMENDATION…………
Additional Items
1. Rationale of Leasing2. Other Credit References
That’s All
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