All depends on your risk appetite but as a general rule, determine your client's
1) loan purpose - to bridge cashflow reqts? expansion? increase in production? remedial/restructuring?
2) financial capacity- cashflow, operating cycle, liquidity, d/e, activity ratios
3) existing customers, suppliers, and providers do trade checks. Determine financial info like the volume of txns, credit terms, and repayment performance
4) credit track record based on their repayment history with your company if any. Conduct BI and CI!
5) updated KYC info -to send notices/ demand letters in case of default, validate by CI
6) assets to attach especially if your exposure is in millions of Php
#businesscredit
#tradecredit
#creditline
#creditinvestigation
#creditandcollectionstrategies
#delinquencymanagement
#accountsreceivablesmanagement
#zerodefault
#zerosmallclaims
#zerocollectioncases
