Get premium membership and access questions with answers, video lessons as well as revision papers.
i) Amount and purpose of loan facilities and sources of repayment
ii) Integrity and reputation of the applicant as well as his legal capacity to assume the
credit obligation
iii) The risk profile of the borrower and the sensitivity of the applicable industry
sector to economic fluctuations
iv) Performance of the borrower in any credit previously granted by the financial
institution and other institutions
v) The borrower’s capacity to repay based on his business plan, if relevant, and
projected cash flows using different scenarios
vi) Cumulative exposure of the borrower to different institutions
vii) Physical inspection of the borrower’s business premises as well as the facility that
is the subject of the proposed financing
viii) Borrower’s business expertise
ix) Adequacy and enforceability of collateral or guarantees, taking into account the
existence of any previous charges of other institutions on the collateral
x) Current and forecast operating environment of the borrower
xi) Background information on shareholders and directors
xii) Management capacity of corporate customers
Kavungya answered the question on March 26, 2019 at 09:27
- What should Financial institutions do when handling credit processing?(Solved)
What should Financial institutions do when handling credit processing?
Date posted: March 26, 2019. Answers (1)
- Explain what is Credit Processing.(Solved)
Explain what is Credit Processing.
Date posted: March 26, 2019. Answers (1)
- Describe Qualitative analysis and Statistical analysis as used in measuring the impact of credit.(Solved)
Describe Qualitative analysis and Statistical analysis as used in measuring the impact of credit.
Date posted: March 26, 2019. Answers (1)
- State the disadvantages of Group Lending.(Solved)
State the disadvantages of Group Lending.
Date posted: March 26, 2019. Answers (1)
- Give the general risk categories banks need to examine.(Solved)
Give the general risk categories banks need to examine.
Date posted: March 26, 2019. Answers (1)
- What do co-corporate clients seek from their bank?(Solved)
What do co-corporate clients seek from their bank?
Date posted: March 26, 2019. Answers (1)
- Explain the different types of financial institutions.(Solved)
Explain the different types of financial institutions.
Date posted: March 26, 2019. Answers (1)
- What are financial institutions?(Solved)
What are financial institutions?
Date posted: March 26, 2019. Answers (1)
- Give the Functions of Women Enterprise Development Fund.(Solved)
Give the Functions of Women Enterprise Development Fund.
Date posted: March 26, 2019. Answers (1)
- Give the functions of Youth Enterprise Development Fund.(Solved)
Give the functions of Youth Enterprise Development Fund.
Date posted: March 26, 2019. Answers (1)
- Explain the sources of funds for micro and small enterprises from the government.(Solved)
Explain the sources of funds for micro and small enterprises from the government.
Date posted: March 26, 2019. Answers (1)
- Give the Advantages of External Sources of Funds.(Solved)
Give the Advantages of External Sources of Funds.
Date posted: March 26, 2019. Answers (1)
- Explain the types of External sources of finance.(Solved)
Explain the types of External sources of finance.
Date posted: March 26, 2019. Answers (1)
- Give the Advantages and disadvantages of Internal Sources of Funds.(Solved)
Give the Advantages and disadvantages of Internal Sources of Funds.
Date posted: March 26, 2019. Answers (1)
- Explain the categories of internal sources of funds.(Solved)
Explain the categories of internal sources of funds.
Date posted: March 26, 2019. Answers (1)
- State the three distinct sources of funds for any business.(Solved)
State the three distinct sources of funds for any business.
Date posted: March 26, 2019. Answers (1)