Understanding your Experian Credit Report and Experian Credit Score
Credit Report
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Transcript of Credit Report
![Page 1: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/1.jpg)
Credit Report
1 .Why we write a profile?
2. To whom?3. What should a profile contain?
![Page 2: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/2.jpg)
Profile Components
• Name of Lessee / Request• Reference / Relationship with OLE• Terms Recommended• Shareholding structure• Management• Business Details• Financial Details and Comments• Bank Borrowings• Cash Flow• Recommendation
![Page 3: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/3.jpg)
Before Starting
•Perpetrator Name•Reviewer Name•Date•New Lessee / Existing
![Page 4: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/4.jpg)
Name of Lessee
• Name of Lessee / Group• Abbreviation
![Page 5: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/5.jpg)
Request
• In house / Executive Committee• Specific limit / Revolving line• Assets brief• (Aggregate) Purchase cost
![Page 6: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/6.jpg)
Route of Enquiry
• The reference.• Logic behind writing reference.• The main references available:• 1. Suppliers• 2. Existing Lessees• 3. Direct Approaches• 4. Others
![Page 7: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/7.jpg)
1 .Suppliers
• Who is the supplier?
• What is he selling – Agent / Distributor?
• What is the history with OLE (HO / Alex)?
• What is the experience with lessee?
• What is the opinion about lessee?
• Additional Information if available…
![Page 8: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/8.jpg)
2. Existing Lessee
• Who is the lessee?
• What is his internal grading?
• What is the relation?
• What is the opinion?
![Page 9: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/9.jpg)
3. Direct App. / Others
• Why Directly Approached?
• What is the general reputation?
![Page 10: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/10.jpg)
Relationship with OLE
• Lessee since …• Internal Grading.• Number of Total contracts / live / term.• Total Purchase Cost – Total Exposure• Paid up• Exposure Report
• What if recent existing lessee?
![Page 11: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/11.jpg)
Terms Recommended
• Revolving / Specific• Asset Detail• Purchase Cost• Rent / Advance / Arrears• FEF / Documentation Charges• Total Exposure• Insurance• Guarantee
![Page 12: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/12.jpg)
Capital Structure
• Legal Status• Date of establishment• Founder• Original paid in capital / Current• Capital Structure• Signers
![Page 13: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/13.jpg)
Management
• Name / Age / Education / year• Experience• Successors if required
![Page 14: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/14.jpg)
Business
• What is the business?• What is the products / Mix?• How is he selling / fleet?• Branches / locations• Customers / credit policy / export?• Suppliers / credit policy / import?• Number of employees
![Page 15: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/15.jpg)
Location Visit
• Number of locations?• Who?• When?• Where?• What?
![Page 16: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/16.jpg)
Financial Comments
• Sales / Gross Profit / Net Profit• Current Assets / Current Liabilities• Net Worth / Total Assets / Fixed Assets• Short / Long term loans• Any other major items• Current / STD/Equity• Sales Growth / GPM / NPM• Receivables / Inventory DOH
![Page 17: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/17.jpg)
Sales
• What is Sales?• Sales Growth / Increase / Decrease• Why?• What is the projection / Why?
![Page 18: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/18.jpg)
Profitability
• What is profitability / GPM / NPM• What is the fact• Why?• What is the projection / Why?
![Page 19: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/19.jpg)
Current Assets / Liabilities
• What is current Assets / Liabilities• Receivables / Inventory DOH• What is the fact?• Why?• What is the projection / Why?
![Page 20: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/20.jpg)
• What is net worth?• What is the fact?• Comment?• Projection / Why? If required
Net Worth
![Page 21: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/21.jpg)
Liquidity & Solvency Ratios
• What is the ratios used?• What is the fact• Comment?• Projection / Why? If required
![Page 22: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/22.jpg)
Bank Borrowings
• Banks dealing with?• Bank reference / Statement of acct.• Maturities?• Limits granted?• Utilization?• Collateral• Interest (if available)
![Page 23: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/23.jpg)
Cash Generation
• How it is done?
•RECOMMENDATION…………
![Page 24: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/24.jpg)
Additional Items
1. Rationale of Leasing2. Other Credit References
![Page 25: Credit Report](https://reader035.fdocument.pub/reader035/viewer/2022081719/55574cc9d8b42aa8378b4fce/html5/thumbnails/25.jpg)
That’s All