Credit Analysis Model - Decision Making
- or -
Post a project like this$$$
- Posted:
- Proposals: 8
- Remote
- #1733631
- Expired
Advanced Financial Modeler, Business Plan Writer, Investor Pitch Deck, Xero Setup and Migration expert,
Indore
20 plus years of exposure of assisting its clients in Financial Modelling, Company valuations for Fund Raising in various stages of FR life cycle.
New Delhi
Microsoft Certified Power BI Data Analyst & Advance Excel Specialist¦Professional Power BI consultant ¦ (ACCA)- Chartered Certified Accountant ¦ Accounting- Reconciliations ¦DAX ¦Data Models ¦
Doha
429894649865102270213140071406416143806714787561790327
Description
Experience Level: Expert
General information for the business: Lending Company
Industry: Business
Kind of consulting: Finance
Description of consulting work: As a first step, please provide with inputs/suggestions to improve my requirement statement mentioned below which would add significant value towards developing a robust credit model along with your proposal and experience in developing such models.
White Labeled assignment, everything would be in excel without any Macro or VBA [Mandatory requirement]. Please quote fixed price after understanding the requirement. Please feel free to raise questions/doubts before sending your proposal.
Requirement Statement:
1. Summary of credit application (What is required by the customer/company). Define qualitative (60% weight for decision) and quantitative (40% weight for decision) key factors for credit appraisal in addition to a potential loss model/calculation.
2. Quantitative Factor - Primary Decision Parameter - Financial Modeling 25% weight
a. Client and business models (Background and key revenue drivers)
b. Financial analysis with focus on cash-flow (current financial soundness, cash flow ability to repay the loan)
c. Identification of risk and mitigating factors (additional security/collateral etc.)
d. Decision on proposal based on product (term loans, working capital, LC/LG etc.) of adjustments for credit application (loan structure, drawing terms, collateral, etc.)
3. Quantitative Factor - Secondary Decision Parameter – Statistical model 20% Weight
a. Build a statistical model to find the leading and lagging indicators of the defaulter customers/company, determining a probability score for each customer/company based on their attributes and determine loss given default. Decision making on assessing the customers/applicants Credit Risk, releasing loans in caution, identify potential defaulters prior in hands also helps to understand the customer and product profile.
4. Quantitative Factor - Tertiary Decision Parameter – Credit Scoring Model 15% weight
a. A Credit Scoring model on which customer/company can be evaluated and decision on proposal for credit application (loan structure, drawing terms, collateral requirement, etc.)
5. Qualitative Factors – Below are a few examples, all may not be suitable 40% weight
a. Sensitivity to macroeconomic environment
b. Past evolution of operating income over the business cycle
c. Sensitivity to legal and political environment
d. Dependence on legal and regulatory changes
e. Market share Judgement concerning firm’s market share
f. Market trend Expected market growth and its sustainability
g. Variability of demand
h. Cyclical and seasonal behavior of demand
i. Technology and innovation
j. Technological sophistication
k. Production flexibility
l. Capability of the production process to face market changes
m. Product-mix Diversification and match of product-mix to market demand
n. Pricing vs competition
o. Placement Dependence on distribution channel and consumer choices
p. Brand value Rating for quality, design and perceived value for customers
q. Dependence on a portfolio of customers and suppliers
r. Concentration of customers and suppliers
6. Industry Analysis – Feeding into Primary, Secondary and Tertiary Decision Parameters
a. Peer Analysis, Debt Syndication possibility, Industry benchmarking
7. Dashboard with summarizing all parameters and decision to provide loan and amount and security/collateral required in terms of cash deposit/Fixed Deposit/Margin Money or Real Estate.
Extra notes:
Industry: Business
Kind of consulting: Finance
Description of consulting work: As a first step, please provide with inputs/suggestions to improve my requirement statement mentioned below which would add significant value towards developing a robust credit model along with your proposal and experience in developing such models.
White Labeled assignment, everything would be in excel without any Macro or VBA [Mandatory requirement]. Please quote fixed price after understanding the requirement. Please feel free to raise questions/doubts before sending your proposal.
Requirement Statement:
1. Summary of credit application (What is required by the customer/company). Define qualitative (60% weight for decision) and quantitative (40% weight for decision) key factors for credit appraisal in addition to a potential loss model/calculation.
2. Quantitative Factor - Primary Decision Parameter - Financial Modeling 25% weight
a. Client and business models (Background and key revenue drivers)
b. Financial analysis with focus on cash-flow (current financial soundness, cash flow ability to repay the loan)
c. Identification of risk and mitigating factors (additional security/collateral etc.)
d. Decision on proposal based on product (term loans, working capital, LC/LG etc.) of adjustments for credit application (loan structure, drawing terms, collateral, etc.)
3. Quantitative Factor - Secondary Decision Parameter – Statistical model 20% Weight
a. Build a statistical model to find the leading and lagging indicators of the defaulter customers/company, determining a probability score for each customer/company based on their attributes and determine loss given default. Decision making on assessing the customers/applicants Credit Risk, releasing loans in caution, identify potential defaulters prior in hands also helps to understand the customer and product profile.
4. Quantitative Factor - Tertiary Decision Parameter – Credit Scoring Model 15% weight
a. A Credit Scoring model on which customer/company can be evaluated and decision on proposal for credit application (loan structure, drawing terms, collateral requirement, etc.)
5. Qualitative Factors – Below are a few examples, all may not be suitable 40% weight
a. Sensitivity to macroeconomic environment
b. Past evolution of operating income over the business cycle
c. Sensitivity to legal and political environment
d. Dependence on legal and regulatory changes
e. Market share Judgement concerning firm’s market share
f. Market trend Expected market growth and its sustainability
g. Variability of demand
h. Cyclical and seasonal behavior of demand
i. Technology and innovation
j. Technological sophistication
k. Production flexibility
l. Capability of the production process to face market changes
m. Product-mix Diversification and match of product-mix to market demand
n. Pricing vs competition
o. Placement Dependence on distribution channel and consumer choices
p. Brand value Rating for quality, design and perceived value for customers
q. Dependence on a portfolio of customers and suppliers
r. Concentration of customers and suppliers
6. Industry Analysis – Feeding into Primary, Secondary and Tertiary Decision Parameters
a. Peer Analysis, Debt Syndication possibility, Industry benchmarking
7. Dashboard with summarizing all parameters and decision to provide loan and amount and security/collateral required in terms of cash deposit/Fixed Deposit/Margin Money or Real Estate.
Extra notes:
Asheesh K.
0% (0)Projects Completed
-
Freelancers worked with
-
Projects awarded
20%
Last project
6 May 2024
United Arab Emirates
New Proposal
Login to your account and send a proposal now to get this project.
Log inClarification Board Ask a Question
-
do you want this for any industry for any specific sector. is it for financial industry ie mainly for lending. what you mean by quantitative decision making.
-
You want to factor all of these into an Excel model?
Surely you would have a scorecard system light on modelling?
Where is there any allowence for Industry by Industry specifics.. lending to software companies is just slightly different to lending to Plant Hire entities?
Have you got any lending or banking experience?
515939513809
We collect cookies to enable the proper functioning and security of our website, and to enhance your experience. By clicking on 'Accept All Cookies', you consent to the use of these cookies. You can change your 'Cookies Settings' at any time. For more information, please read ourCookie Policy
Cookie Settings
Accept All Cookies