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CREDIT POLICY
LoBue's approach to the development or enhancement of a client's credit policy
THE NEED
Faced with the day-to-day management of a business, managers
don't always have the time or the resources to assess and
improve current Credit policy and procedures. Outdated credit
management:
- Impairs staff ability to accurately evaluate credit
worthiness
- Increases the credit risk of the current portfolio
- Degrades the value and quality of the loan portfolio
- Increases loan losses and collection efforts
THE SOLUTION
LoBue works with the client to:
- Document current Credit policy and procedures whether formal
or implicit
- Perform a Competitive Analysis of the local or regional
industry standards and practices
- Identify the gaps between the current environment and the
benchmark
- Develop tactics and action plans to resolve the gaps
including
- Risk Rating
- Exposure Monitoring
- Management Reporting
- Develop, document and implement a comprehensive Credit
Policy including an assessment of training needs
THE RESULTS
Implementation of an enhanced Credit Policy and procedures
will enable the client firm to:
- Accurately evaluate each applicant's credit worthiness
- Decrease the credit risk associated with the portfolio as a
whole
- Enhance the value and quality of the loan portfolio
- Minimize loan losses and collection efforts
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~Typical Performance Results~
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Key Performance Indicators |
Loan Loss Provision |
Collection Expense |
Average Payment Cycle |
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Typical Range of Results |
30 - 50% |
25 - 40% |
25 - 40% |
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