Credit Analyst how-to
How to Write a Commercial Credit Memo
Credit memos tell the risk story.
Quick answer
Credit memos tell the risk story. In short: summarize; describe; analyze, then complete the remaining steps below.
Step by step
Summarize the request.
Describe the borrower.
Analyze financials.
Evaluate collateral.
List strengths and risks.
Recommend.
Safety reminders for credit analysts
- Protect borrower information
- Follow fair lending laws
- Avoid conflicts of interest
- Report suspected fraud
Key terms
Spreading · DSCR · Leverage · Liquidity · Collateral · LTV: see the full credit analyst glossary.