Sample interview questions: How would you assess the creditworthiness of potential clients or customers?
Sample answer:
Assessing Creditworthiness of Potential Clients or Customers
1. Financial Analysis
- Review financial statements (balance sheet, income statement, cash flow statement) to assess financial health and stability.
- Analyze key financial ratios, including:
- Debt-to-equity ratio
- Current ratio
- Gross profit margin
2. Credit History
- Obtain credit reports from reputable agencies such as Equifax, Experian, or TransUnion.
- Review credit scores, payment history, and any outstanding debts.
- Assess the borrower’s track record of meeting financial obligations.
3. Industry and Company Analysis
- Research the industry in which the client operates to understand market trends and potential risks.
- Conduct a thorough analysis of the company’s business plan, management team, and competitive landscape.
4. Cash Flow and Liquidity
- Evaluate the client’s cash flow projections and determine if they have sufficient liquidity to meet current and future financial obligat… Read full answer
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