The following seminar papter superficially analyses the topic of creditworthiness analysis in order to provide the reader with the respective basics in regard to the topic.
Finance is one of the main fields within the economics and the cornerstone both for the domestic and global businesses. Finance studies and investigates the opportunities in which individuals and enterprises source, allocate and use monetary funds and resources over time, considering the risks and the monetary developments such as inflation. It is a discipline that provides the monetary basis and structure for every kind of business. Finance is one the most path breaking and strategically essential business sectors. In order to comprehend the finance and the financial structure of the company an individual or a manager has to be capable to conceive the complete business structure of the enterprise.
The importance of finance for the international and local business environment but also for private persons is therefore crucial. It is important to mention that finance is a very manifold doctrine with diverse variations, manifestations and a long historical development.
Because of the previous mentioned manifoldness of finance it should be consequently said that there is a massive amount of strategies to manage and to acquire the necessary financial or monetary basis either for a corporate or for a private need. One of the most common and popular possibilities to acquire money for financing an investment, to pay the corporate debts or for the private purposes of a person, is to apply for a credit.
Following to this fact it is relevant to emphasize that the credit-granting process is a very specific and complex procedure. The complexity of this process could be explained by different economic and political reasons. In order to maintain the stability of the financial markets, to protect the money-granting institutions or persons and the whole economic environment a credit cannot be granted without any guarantee and safeness for the back-paying. Henceforth the credit providing institutions and authorities use an analysis with the task to control the creditworthiness of credit users.
The creditworthiness analysis was created within decades, shaped by different cultures and nations, affected by historical and economic mistakes and crises.
Inhaltsverzeichnis (Table of Contents)
- Preface
- Essentials of the creditworthiness analysis
- Credit
- Credit-granting institutions and credit users
- Creditworthiness and creditworthiness analysis
- Differences of rating and creditworthiness analysis
- Internal Rating
- External Rating
- Basel II/III
- Instruments and methods of the creditworthiness analysis
- Personal and economic creditworthiness
- Personal creditworthiness analysis
- Economic creditworthiness analysis
- The 6 C's approach as an alternative to the personal/economic creditworthiness
- Personal and economic creditworthiness
- Application of the creditworthiness analysis for the start-up companies (Case Study)
- Closing words
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This seminar paper aims to investigate and describe the creditworthiness analysis, outlining its key steps, tasks, and methods. The paper aims to provide a comprehensive understanding of the creditworthiness analysis process, highlighting its importance in assessing the risk associated with granting credit.
- The definition and importance of creditworthiness analysis
- The role of creditworthiness analysis in managing financial risk
- The key elements and methods involved in creditworthiness analysis
- The application of creditworthiness analysis in different contexts
- The impact of regulations such as Basel II/III on creditworthiness analysis
Zusammenfassung der Kapitel (Chapter Summaries)
- Preface: This chapter provides an overview of finance and its importance in both domestic and global business environments. It also highlights the significance of credit as a common means of acquiring funds and the complex process of credit-granting.
- Essentials of the creditworthiness analysis: This chapter defines key terms and concepts related to creditworthiness analysis, including credit, credit-granting institutions, credit users, and the differences between creditworthiness analysis and rating.
- Instruments and methods of the creditworthiness analysis: This chapter delves into the methods used in creditworthiness analysis, focusing on both personal and economic aspects. It also introduces the 6 C's approach, an alternative framework for evaluating creditworthiness.
- Application of the creditworthiness analysis for the start-up companies (Case Study): This chapter examines the specific application of creditworthiness analysis within the context of start-up companies, providing a case study illustrating the process.
Schlüsselwörter (Keywords)
The primary keywords and focus topics of the text are creditworthiness analysis, credit risk, financial risk, credit-granting institutions, credit users, Basel II/III, and methods of creditworthiness analysis. These terms represent the core concepts and research areas explored within the paper, highlighting the significance of assessing and managing credit risk in various financial contexts.
- Quote paper
- Paul Sogrin (Author), 2014, Creditworthiness Analysis. Instruments and Methods, Munich, GRIN Verlag, https://www.grin.com/document/450157
