Evaluation process of commercial loan requests and an application covering the functioning of credit guarantee fund

The banks want their loans to be repaid smoothly. For this reason, one of the most important process of credit granting is the credit inquiry and the financial analysis for companies demanding credit from banks. Credit inquiry and the financial analysis include determining whether the company is credible or not through the information obtained about the character of the company, capacity, liquidity, financial structure, targets, market reputation, position in the sector, profitability and activities carried out. Banks paying attention such criteria as security, liquidity, profitability and fluidity when giving loan. According to these criteria, the requirements of the company should be determined correctly and credited accordingly in terms of repayment terms, amount, valuation, guarantees and pricing of the loan. The banks intend to reduce the risks that may emerge in future through these criteria to the minimum level. The function of the Credit Guarantee Fund, which supports financing and solves this problem for companies that can not use credit due to insufficient guarantee, is explained. This study includes credit inquiry and financial analysis for the firm in the sample exercise.