Points to be considered for credit risk .

You have to decide whether to provide credit or not .

1.Character of the person and the organization . Also the relationship that can be developed

2.Capacity to pay back .This will also include capital and profitability

Also turnover , asset size ,

3.Collateral - can he provide the same

4.Reliability and continuity of the management

5.Financial reporting and transparency

6.Industry risk

7.Asset liquidity

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