Credit Report

1 .Why we write a profile?

2. To whom?3. What should a profile contain?

Profile Components

• Name of Lessee / Request• Reference / Relationship with OLE• Terms Recommended• Shareholding structure• Management• Business Details• Financial Details and Comments• Bank Borrowings• Cash Flow• Recommendation

Before Starting

•Perpetrator Name•Reviewer Name•Date•New Lessee / Existing

Name of Lessee

• Name of Lessee / Group• Abbreviation

Request

• In house / Executive Committee• Specific limit / Revolving line• Assets brief• (Aggregate) Purchase cost

Route of Enquiry

• The reference.• Logic behind writing reference.• The main references available:• 1. Suppliers• 2. Existing Lessees• 3. Direct Approaches• 4. Others

1 .Suppliers

• Who is the supplier?

• What is he selling – Agent / Distributor?

• What is the history with OLE (HO / Alex)?

• What is the experience with lessee?

• What is the opinion about lessee?

• Additional Information if available…

2. Existing Lessee

• Who is the lessee?

• What is his internal grading?

• What is the relation?

• What is the opinion?

3. Direct App. / Others

• Why Directly Approached?

• What is the general reputation?

Relationship with OLE

• Lessee since …• Internal Grading.• Number of Total contracts / live / term.• Total Purchase Cost – Total Exposure• Paid up• Exposure Report

• What if recent existing lessee?

Terms Recommended

• Revolving / Specific• Asset Detail• Purchase Cost• Rent / Advance / Arrears• FEF / Documentation Charges• Total Exposure• Insurance• Guarantee

Capital Structure

• Legal Status• Date of establishment• Founder• Original paid in capital / Current• Capital Structure• Signers

Management

• Name / Age / Education / year• Experience• Successors if required

Business

• What is the business?• What is the products / Mix?• How is he selling / fleet?• Branches / locations• Customers / credit policy / export?• Suppliers / credit policy / import?• Number of employees

Location Visit

• Number of locations?• Who?• When?• Where?• What?

Financial Comments

• Sales / Gross Profit / Net Profit• Current Assets / Current Liabilities• Net Worth / Total Assets / Fixed Assets• Short / Long term loans• Any other major items• Current / STD/Equity• Sales Growth / GPM / NPM• Receivables / Inventory DOH

Sales

• What is Sales?• Sales Growth / Increase / Decrease• Why?• What is the projection / Why?

Profitability

• What is profitability / GPM / NPM• What is the fact• Why?• What is the projection / Why?

Current Assets / Liabilities

• What is current Assets / Liabilities• Receivables / Inventory DOH• What is the fact?• Why?• What is the projection / Why?

• What is net worth?• What is the fact?• Comment?• Projection / Why? If required

Net Worth

Liquidity & Solvency Ratios

• What is the ratios used?• What is the fact• Comment?• Projection / Why? If required

Bank Borrowings

• Banks dealing with?• Bank reference / Statement of acct.• Maturities?• Limits granted?• Utilization?• Collateral• Interest (if available)

Cash Generation

• How it is done?

•RECOMMENDATION…………

Additional Items

1. Rationale of Leasing2. Other Credit References

That’s All