Abstract
The activity of any commercial organisation is of high risk. It is often connected with the fact that companies tend to take various risks to achieve their own goals for the sake of which they operate and perform their activities. Understanding and determination of whether a company is financially stable require us to conduct the so-called creditworthiness analysis of an entity. Moreover, it is expedient for any profit-making company to analyse and perform monitoring its creditworthiness. All of this makes such a kind of an analysis pretty relevant and useful. This research may be regarded as an attempt to examine theoretical fundamentals and some existing methodologies of creditworthiness analysis.
Highlights
T oday’s economy of any country is full of risks
All economic agents often have to operate in uncertainties
As for all economic agents interacting with a company, this analysis gives an excellent opportunity to make right decisions
Summary
Character — customer’s reputation; Ability — ability to repay a loan; Means — something that guarantees your solvency; Purpose — for what a loan is taken out; Amount — a loan amount; Repayment — conditions of loan repayment; Insurance — protection against risks of failing to repay a loan. C 1 — character — lender’s reputation; C 2 — capacity — solvency; C 3 — capital — capital adequacy of a borrower; C 4 — conditions — terms of loan repayment; C 5 — collateral — some ownership needed in case of failure to give a loan back; C 6 — control — supervision. P — person — a borrower’s reputation; A — amount — a loan amount; R — repayment — conditions of repayment; S — security — an estimate of loan collateral; E — expediency — the aim of taking out a loan; R — remuneration — interest rate
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
