credit analysis
Borrower risk evaluation
Credit analysis is the process of evaluating a borrower's ability to repay debt.
Lenders examine financial statements, credit history, income, assets, and market conditions to assess risk before extending loans or credit lines.
The bank's credit analysis revealed the company had too much existing debt.
The term applies to individuals, businesses, and government bonds alike.
- payment historyRecord of past transactions
- balance sheetAssets-liabilities-equity report
- riskPossibility of harm
- EBITDAProfit before major deductions
- corporate bondsDebt issued by businesses
stress testing · personal loans · underwriting · income statement · creditworthiness · covenant · collateral · debt-to-income ratio · debt service · audit · loan · rating · portfolio · repayment · bankruptcy · borrower · red flags · leverage