PRACTICAL ASPECTS REGARDING THE ENTERPRISE’S CREDITWORTHINESS AS METHOD OF RISK ANALYSYS

Abstract

The company’s creditworthiness is a prudent method of enterprise financial analysis, specific in banks, where enterprises have the quality of loan applicant in relation to bank. The bank tracks the financial indicators, in relation to a pre-established threshold for the value of these indicators. In relation to this threshold, the financial ratios must be higher in order to benefit from funds attracted by the bank. This threshold, we can call the minimum risk or the prudential value for the bank in relation to its customers. Depending on this prudential threshold the creditworthiness of businesses isclassified as: poor, satisfactory, good and very good reliability. This method applied to enterprises offers banks through a relatively simple analysis, the possibility of knowing the performance of a company, in such a manner as to understand the risk they are exposed to.

Keywords

• enterprise
• indicators
• company credit worthiness
• prudential threshold
• risk exposure
• consumer protection