The document outlines the credit granting decision process utilized by credit managers, involving the assessment of individuals' demographics, financial situations, and credit histories to predict repayment behavior. It details the steps involved in credit purchasing and highlights banks' cautious approach in lending, emphasizing the necessity of assurance on borrowers' repayment capabilities. Additionally, it mentions the 'five C's of credit' which include character, capacity to repay, collateral, capital, and conditions.

1. ADVANCE
CORPORATE FINANCE

2. Recognize This Person?

3. CREDIT GRANTING DECISION
What is credit granting decision?
A process where credit managers gather information about the
demographics of individuals, their current financial situation and previous
credit history and use this to make predictions about future repayment
behavior.

4. In case of Purchase(Credit purchase)
In case of Individuals expecting loans
Who Needs Credit?

5. Procedure of Credit Purchase
 Receive sales order
 Issue credit application
 Collect and review credit application
 Assign credit level.
 Hold order

6.  Obtain credit insurance
 Verify remaining credit
 Approve sales order
 File credit documentation

7. Loans By Banks
Banks are generally on the conservative end of the lending
spectrum.
Clients deposit funds into banks for safekeeping, to transact
business, and earn a reasonable rate of interest on their funds.
Since Banks are lending client funds, they require reasonable
assurance that borrowing clients can repay their loans.

8. Five C’s of Credit
• Character
• Capacity to Repay
• Collateral
• Capital
• Conditions

9. THANK YOU