Credit Analysis
/ˈkrɛdɪt əˈnæləsɪs/
Definitions
- (n.) The systematic evaluation of a borrower's financial history and capacity to repay debt, often used by lenders to assess credit risk.
The bank conducted a thorough credit analysis before approving the loan.
Forms
- credit analysis
- credit analyses
Related terms
See also
Commentary
Credit analysis is a critical step in lending and investment decisions, helping to minimize default risk through careful review of financial and legal obligations.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.