A job as a commercial credit analyst, sometimes referred to as a risk analyst, is well suited for someone who enjoys analyzing numbers to help a business prosper. His focus is to determine the ability of a business to repay its loans by analyzing the company's financial statements. A commercial credit analyst may work for a bank, government agency or those with financial investment activities, such as securities and commodity brokerages. Credit analysts work in a team environment, interacting with managers and clients.
Responsibilities
A commercial credit analyst helps a company minimize its risk. He spends his days analyzing income statements and balance sheets. He may be required to prepare reports to justify to his supervisor whether or not the the company is in a position to take the risk of extending credit to its customers and, if so, the degree of risk involved. If his supervisor approves extending credit, the company may rely on him to evaluate a payment plan structure that would work for the company.
Financial Analysis
A commercial credit analyst's financial analysis of the company starts with examining the company's historic trends. He reviews the company's past financial statements and operating performance. He takes into consideration the strength of talent in the organization, the economic environment and competitors' performances to form his opinion and make his recommendations. Based on the trends, he can analyze if the company's future financial goals are reasonable.
Skills
A commercial credit analyst must have accounting skills since he spends time running calculations for corporate financial statements and tax returns. His knowledge of spreadsheet programs allows him to create reports to compare with data from previous years. He prepares a narrative report and recommendations based on the analysis of the data. He needs written and oral communication skills to present his findings to the company's management team.
Education
To become a credit analyst you should have a bachelor's degree in accounting, finance or business administration. Employers have a preference for credit analysts with a professional designation, such as a Chartered Financial Analyst or a master's degree in the field. You can add to your credentials with certification through the National Association of Credit Management to advance in the company or find a better-paying position with another company.
Responsibilities
A commercial credit analyst helps a company minimize its risk. He spends his days analyzing income statements and balance sheets. He may be required to prepare reports to justify to his supervisor whether or not the the company is in a position to take the risk of extending credit to its customers and, if so, the degree of risk involved. If his supervisor approves extending credit, the company may rely on him to evaluate a payment plan structure that would work for the company.
Financial Analysis
A commercial credit analyst's financial analysis of the company starts with examining the company's historic trends. He reviews the company's past financial statements and operating performance. He takes into consideration the strength of talent in the organization, the economic environment and competitors' performances to form his opinion and make his recommendations. Based on the trends, he can analyze if the company's future financial goals are reasonable.
Skills
A commercial credit analyst must have accounting skills since he spends time running calculations for corporate financial statements and tax returns. His knowledge of spreadsheet programs allows him to create reports to compare with data from previous years. He prepares a narrative report and recommendations based on the analysis of the data. He needs written and oral communication skills to present his findings to the company's management team.
Education
To become a credit analyst you should have a bachelor's degree in accounting, finance or business administration. Employers have a preference for credit analysts with a professional designation, such as a Chartered Financial Analyst or a master's degree in the field. You can add to your credentials with certification through the National Association of Credit Management to advance in the company or find a better-paying position with another company.