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Credit Evaluation

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Rakib Shaikh

on 4 September 2017

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Transcript of Credit Evaluation

Proper analysis of credit
risks is important as it help
in establishing credit limits.
In analysis credit risk two type of errors occur:
Credit Evaluation
Traditional credit Analysis
Five C's of credit
Types of error
Type I error
A good customer is misclassified as a poor credit risk .

Type II error
A bad customer is misclassified as a good credit risk .
Credit Evaluation
Traditional credit analysis is the method by which one calculates the credit of business .
It can be done in term of the "Five C's of credit
Full transcript