deals with the scientific planning, organizing and controlling the manifold activities of credit transactions.

It is identified as special group of people whose job is to direct or redirect the efforts and activities of other people toward the proper movement of credit. It also refers to a system that will insure close collaboration between the grant of credit and the collection of credit.

It is that unit of the whole organizational set up which is responsible in the conduct of credit transaction. It is responsible for the gathering of all credit information about the applicant & assembling them as guide for the loan officer in his assessment and analysis in order to establish credit rating.

refers to a person responsible in supervising all the works of the credit department. It is a man who occupies a very important position in the structure of credit. His decision spells the success or failure of a credit granting

It is a person who is responsible in gathering information regarding the applicant

the exhaustive study & evaluation of the credit risk as well as information and supporting papers related to the applicant. In order to avoid or minimize the undesirable effect of credit, there is a need for a more or less exhaustive investigation of the credit risk as well as the analysis of information relating to the applicant.

 handles the over-all supervision of his section or department;  receives request for Credit Investigation Report/Appraisal Report;  assigns senior credit investigators/appraisers for completion and submission of CIR/AR on a certain date;  reviews, edits and check the accuracy of the submitted CIR/AR;  answers credit inquiries from banks, trade firms, bank clients and other financial institutions;  implement procedures and ascertains that all matters of importance are given top priority;  supervises the preparation of monthly reports on output, etc.

assumes responsibility of the supervisor in his/her absence;  evaluation of Cash Flow Projections based on the projected financial statements and feasibility studies of various companies;  works continuously on the revision of present and future credit rating sheets of credit evaluation reports.

assist senior credit analyst;  studies financial statements and other documents submitted by the client

an evaluation of the financial status of the client for evaluating the credit worthiness of the client.

a study of the post-operating performance of the client.

an analysis and projection of cash generation capacity and future cash requirement of the client.

a complete study of the technical, financial, marketing and management aspects of the client’s project proposal.

 conducts ocular inspection of properties offered as collaterals;  sketches the vicinity and location of the property under appraisal;  verifies the authenticity of original/transfer certificates of titles with the Register of Deeds;  summarizes in a report form findings on the ocular inspection made, etc.

 conducts checking and evaluation of applicants for credit accommodations ;  interviews co-makers and employers of applicants/clients to verify data gathered;  prepares credit investigation report and other correspondence; and  assist collection group in locating the whereabouts of clients with pastdue obligations and real properties registered in their names.

All available sources of credit information must be tapped and utilized so that a proper estimation of the credit risk can be obtained. For individuals who buy for consumption, character and their ability to pay serve as important bases of credit; and for business concerns, it is the net worth and condition of the business. All gathered credit information must be kept confidential.

collection of accounts should start from the moment they become due. There should be no room for vacillation insofar as collection is concerned. The task and responsibility of every collection department is to get the money due to the company. Collection records must be kept and maintained and should indicate when notices were sent; dates when calls were made by the collectors; payments made; balances due; and action taken, if any.

the results must be evaluated against company policies and procedures and records must be periodically reviewed and kept up to date.

the credit man must be able to adjust to circumstances. He must be prepared to react to different personalities without losing his correct or balanced disposition.

the credit man must be courteous tempered with sound judgment. He must be able to listen patiently to details and try to appreciate the views of others and place himself in the shoes of others. A credit man may reject a customer’s application for credit but still he can retain his goodwill if the rejection is done tactfully.

the credit man must be able to discern the important parts of the facts gathered and must be able to keep an eye for details and weigh facts objectively and he must be able to arrive at a quick and wise decision.

A credit man must make a decision promptly and with conviction based on facts. He must be ready to give judgment right away.

the credit man must stand with his decisions when made and he must be able to support these with reasonable facts.

A credit man must have knowledge of accounting so as to be able to read, interpret and analyze Qualifications

It is the recording, interpreting and analyzing of financial financial statements.

the credit man must be acquainted with basic economics so as to appreciate the movements of business activity such as price changes, banking policies, tax measures, etc.

the credit man must be equipped with a good knowledge of finance because it covers the principles and practice of credit and collection.

the credit man must have knowledge about legislation related to business such as law on sales, negotiable instruments, etc.

the credit man must have knowledge about new methods, techniques and practices of marketing for this has relations to the credit work of maximizing sales.

the credit man must also have knowledge and understanding of the (a) management principles and practices; and (b) oral and written communication skills.

It can be obtained from internal records (data which are in files of the creditor) and from the applicant’s information which could be obtained from personal interview, ocular inspection, mailed questionnaire and analyses of financial statements of the business of the applicants.

It can be obtained from mercantile agencies, trade references, banks, newspaper clippings, court cases, report of competitors, etc.

A record of the transaction is made and the credit folder of the applicant is prepared and filed which are from time to time updated.

Are made in accordance with discount or net credit period. This pertains to increasing or decreasing the credit line or extension.

 Responsible of maintaining safe productive lending operations in order to protect the funds of the cooperative.  Responsible for the approval of loan policies.  Setting up of operating standards.  Granting lending authority

 Responsible for protecting the quality of the coops' loan portfolio.  To evaluate and approve loan applications.  Review all delinquent & problem loans.  Recommend appropriate collection/and or remedial actions to the Manager.

 Responsible for the day to day management of the coops' lending operations which includes:  loan processing  maintaining credit files,  verifying loan security,  monitoring and reviewing outstanding loans,  implementing delinquency controls

 Responsible for undertaking the details of credit operations  Promotes coops' credit facilities/services  Analyses and recommends approval of loan applications  Obtain all required loan documentation.  Maintains credit files

It is the maximum amount of credit that could be granted to one borrower.

This represents the maximum loan that could be granted to a borrower based on the property’s market value (which is usually 60% to 80%.

This limit is imposed as a performance measurement tool of branches or of the credit & collection department.

Areas where credit could be granted are clearly identified based on geographical limits

The decision as to who will approve the loan application will require practical & common sense consideration. This could either be geographical or be based on rank or title.