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Debt to burden ratio of customer, ratio analysis, repayment history, salary credits in bank statements, nationality
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The Main Factors that influence credit decision are:
1- The organization's "credit Study and Financial Position".
2- The efficiency of the organization's "Working Capital Cycle".
3- The organization's ability for "Repayment on due time".
4- The organization's "Reputation in the market".
5- The organization's "Management Style and Ability".
There are number of factors influencing the credit worthiness. To list some
Debt Service Ratio (DSR), credit score, Repayment history, company reputation and Category (listed/Non Listed), salary slab, nationality(high risk/low risk). and much more.
project viability
source of repayment
character
amount involved
To understand the creditworthiness of customer is not easy, even though calculating the following parameters helps to get the risk associated with the portfolio:
1.Percent Advance
2.payment to income
We can also consider the factors like contract tenure , the credit scores etc before decision making .
