credit-analysis

Vocabulary Word

Definition

'Credit-analysis' is the process banks or lenders use to judge if it's safe to give someone a loan. It's like checking a person's financial history, paying habits, and current money situation.

Examples in Different Contexts

Credit analysis in finance involves assessing a borrower's ability to repay debt. A financial analyst might say, 'Our credit analysis process evaluates potential borrowers' financial health to minimize risk.'

Practice Scenarios

Business

Scenario:

Considering the firm's solid repayment record, I'm inclined to think we could extend an additional business loan.

Response:

Following a thorough credit analysis, I agree, the firm's repayment prospects look promising.

Credit-rating

Scenario:

Our next task is to assess the socioeconomic factors influencing the country's economic environment before determining its credit rating.

Response:

Indeed, the national credit rating will definitely require a complex credit analysis considering various socioeconomic factors.