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Credit decision is one of the critical area when a bank extend financial facility to their client. BY Credit Decision, any bank officer analyse the repayment capacity of borrower, risks involved in crtedit with a view to secure bank's interest.Credit decision is done by Project Appraisal, Analysis of Core Financial Statement.
I believe it is very important as great risk is involved with every decision.
If you grant such credit you aim for expanding your business and revenues but run under the risk of non payment and vise versa ,if you don't grant such credit you run the risk of not extending your full organizational goals of attracting sound investors and customers.
In my experience working with companies as a business manager this subject required a lot of attention and financial connections and intelligence to better qualify each customer without missing any good opportunity.
In order to minimize bad debt losses banks must control credit granting carefully, following good business practices. Credit must be granted selectively, based on the applicant’s creditworthiness.
Credit appraisal is most vulnerable & vital decision for a finance company.
