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Credit can be characterized as when one party receives resources from another party, without immediate cash payment. Commercial credit, specifically, is when a business entity (the debtor) receives resources from a lender (the creditor). Typically these are financial resources such as operating credit or term financing to support the acquisition of assets, in exchange for the promise of future repayment of principal (plus interest). The future repayment terms are a function of the debtor’s overall creditworthiness and any underlying physical collateral – this is called credit structuring.

Credit analysis is a type of financial analysis undertaken by direct lenders, credit analysts, and Debt Capital Markets professionals with an emphasis on assessing a company’s ability (and its management’s willingness) to service debt obligations into the future. A borrower receives a risk grade, which corresponds to its probability of default. Credit structuring, a core tenant of credit analysis, is the art and science of using covenants, loan terms, and collateral security (among other things) to mitigate loan loss, in the event of a financial default.

The Commercial Banking & Credit Analyst (CBCA)® certification program is suitable for beginners to advanced learners and can help you become a world-class credit analyst.

Credit professionals work in a wide variety of roles, from assessing trade credit on behalf of corporations, to roles within financial services firms like commercial banking, credit writing, adjudication, equipment finance, asset-based lending, and real estate finance.