Evaluation of corporate/commercial loan demans

Credit can be stated as providing purchase ability to trustworthy individuals or organizations with the obligation of repaying the fund after a certain time. While conducting a company analysis, loan demand is evaluated according to the banking policy by considering financial data of the organization in accordance with the internal and external sources and legislations. Non-payment of the capital and interest rate is stated as credit risk. In order to minimize the credit risk, the party requesting the credit must be assessed, properly. It is then decided whether credit proposal will be prepared to be represented to the party requesting. Productivity of the firm increases with the demand of institutional credit and therefore, growth of the economy is accomplished, as well. Credits can be expressed in two ways: cash and non-cash. Lending process is a process that involves liquadition of the credit application before and after the disbursement. At this point, it is obligatory for the bank stuff to have the ability to master sector, economy, regulations, procedures and workflow and to have necessary training to accomplish the requirements of his/her job title. It is important to determine and give answers to the questions in the branch channel such as the reason that credit is requested and the purpose of the use. By this way, the source of the risk that can be encountered would be foreseen and the points that need to be concentrated at the financial analysis and intelligence stages are revealed. When an appointment is requested, taking the names and titles of the people to be interviewed, the address of the place that interview is going to take place in, properly;keeping necessary business cards, brochures or documents to be shared, with us are important factors to be considered. At the stage of credit demand, documentation set must be delivered fully and absolutely. The credit demand is finalized as negative or positive in the direction of determining firm's financial status, activity results, development levels and tendencies of firm's financial conditions. If the credit is allocated, the stage of credit processes is leveled up to the credit management process. The primary aim of this stage is to reduce the number of bad credits and increase the proportion of maximum profitability. Key Words: Credit risk, financial analysis, crediting process.