WHAT DOES A CREDIT ANALYST DO?
Updated: May 29, 2025 - The Credit Analyst manages assigned customer accounts, ensuring collections, reconciliations, and compliance with the company's credit management policies. This position analyzes customer financial statuses, recommends credit limits, and monitors credit concerns, reporting findings to management. The analyst coordinates with sales, customer service, and accounting teams to resolve credit issues and enhance efficiency and accuracy in AR processes.


A Review of Professional Skills and Functions for Credit Analyst
1. Credit Analyst Duties
- Collection Metrics: Ensuring past due and collection metrics are achieved on a moderately complex portfolio of accounts.
- Customer Contact: Establishing and maintaining contact with customers concerning past due invoices, payment trends, resolution of disputed invoices, and other matters related to receivables.
- Functional Interaction: Interacting with a variety of functional areas at various business sites related to customer disputes, invoice copies, proof of delivery, contract/PO issues.
- Cash Forecasting: Providing monthly cash receipt forecasts and various analysis.
- Credit Terms: Recommending credit terms for new accounts.
- Payment Analysis: Analysing payment trends and making recommendations.
- Customer Satisfaction: Promoting customer satisfaction at all times.
- Credit Underwriting: Performing comprehensive rigorous credit underwriting, evaluating capital structures, company fundamentals, industry trends, and credit agreements.
- Capital Modeling: Creating modeling for capital preservation and downside protection.
- Credit Memoranda: Authoring formal credit memoranda and recommendations.
- Investment Presentation: Presenting investment recommendations to the portfolio manager and ZCCP’s Investment Committee.
2. Credit Analyst Details
- Account Management: Manage assigned customer accounts, collections, and reconciliation.
- Financial Analysis: Analyze and interpret customer financial status and provide recommendations on credit limits to management.
- Credit Policy Compliance: Ensure the company’s credit management policies are followed.
- Credit Monitoring: Monitor and report any credit concerns to management.
- Team Collaboration: Work with sales, Customer Service, AR Accounting team, and customers to resolve credit issues and provide assistance and direction.
- Process Management: Ensure AR credit and collection team daily, weekly, and month-end processes are completed in a timely and accurate manner.
- Transaction Processing: Process debit/credit memos and journal entries related to AR activity.
- Customer Support: Respond to customer (internal or external) inquiries relating to statements, invoices, account lists, etc.
- Sarbanes-Oxley Compliance: Actively participate in Sarbanes 404 controls focused on AR Credit/Collection.
- Sales Tax Assistance: Assist with customer sales tax inquiries and information.
- Process Improvement: Provide recommendations on processes and procedures that improve efficiency and accuracy.
- Portal Management: Invoice and manage customer online portals for accounts requiring portal billing.
3. Credit Analyst Responsibilities
- Credit Analysis: Analyze credit and financial information (e.g., credit reports, tax returns, financial statements) to determine credit risk for commercial lending with minimal direction.
- Data Entry: Enter financial figures into programs to generate ratios and assist in determining applicant creditworthiness or assessing changes in the credit risk profile.
- Borrowing Limit Review: Review and enter accounts receivable/payable agings and inventory reports to ensure borrowers remain within borrowing limits for formula-based revolving lines of credit.
- Cash Flow Projection: Generate cash flow projections using key drivers and assumptions.
- Ratio Analysis: Perform reconciliation, calculation, and interpretation of ratios, comparative, trend, and market analysis, and accurate cash flow analysis with stress-testing.
- Client Issue Resolution: Work independently with Credit and Relationship Managers to identify client issues and make problem-solving decisions to meet credit needs.
- Loan Underwriting: Underwrite loan renewals, generally for requests of $500,000 or less, when time permits.
- Policy Compliance: Understand and comply with credit policy and procedures.
- Delinquent Loan Review: Assist lenders in reviewing delinquent or watch list loans and make recommendations for modification or restructuring when appropriate.
- Business Advisory: Identify opportunities to provide additional advice or information to business members during underwriting and share insights with lenders.
- Turnaround Time Management: Consistently meet or exceed established turnaround times for completing loan analysis.
- Inquiry Response: Respond to staff and member inquiries received by phone or email, both directly and through the department helpline.
4. Credit Analyst Job Summary
- Cash Flow Analysis: Perform cash flow and financial statement analysis.
- Trend Interpretation: Categorize and use business member information to interpret financial and industry trends.
- Risk Evaluation: Collaborate with business lenders to evaluate risk and establish creditworthiness, joining meetings with members when necessary.
- Loan Structuring: Provide recommendations on loan structure and covenants.
- Credit Memo Development: Collaborate with lenders to develop credit memos and presentations for review by lending officers or loan committees.
- Lender Communication: Maintain ongoing communication with business lenders regarding loan status.
- Appraisal Review: Conduct appraisal reviews and update credit memos and presentations.
- Covenant Monitoring: Monitor existing loans for compliance with loan covenants.
- Loan Covenant Verification: Monitor and verify construction draws, borrowing base certificates, and other loan covenants.
- Loan Reviews: Work with lenders to complete annual reviews and renewals for existing credits.
- Risk Rating Assignment: Collaborate with lenders to assign risk ratings to new and existing loans and identify any changes in the borrower's capacity to meet loan terms.
5. Credit Analyst Accountabilities
- Loan Underwriting: Underwrite mortgage, consumer, and select small business loan applications.
- Pipeline Management: Manage and oversee an assigned pipeline of mortgage and/or consumer loan applications.
- Loan Application Processing: Initiate the loan opening process and submit complete applications for pre-approval.
- Eligibility Determination: Determine loan eligibility based on initial review and ensure timely preparation of required disclosures within regulatory timelines.
- Risk Analysis: Analyze risk factors to underwrite loans according to company and investor guidelines.
- Risk Mitigation: Mitigate loan risk through assessment of applicant credit quality, repayment ability, and collateral valuation.
- Cash Flow Analysis: Analyze tax returns and financial statements to determine applicant cash flows and repayment capacity.
- Loan Presentation: Prepare formal loan presentations for senior colleagues and loan committees.
- Credit Authority: Exercise discretion and independent judgment within assigned credit authority.
- Document Scrutiny: Scrutinize supporting loan documents to ensure accuracy and underwriting authentication.
- Client Negotiation: Occasionally negotiate loan-related transactions directly with clients professionally and courteously.
- Partner Interaction: Interact with internal and external business partners regularly.
- Regulatory Compliance: Apply relevant concepts, policies, and regulations consistently throughout the lending process.
6. Credit Analyst Functions
- Credit Investigation: Investigating all available sources of credit and financial information, including reporting services, credit bureaus, other companies, bank references, and in-house credit information
- Financial Analysis: Spreading and analyzing financial statements and related material using the appropriate software programs
- Credit Summarization: Under supervision, preparing summaries, presenting facts, and offering opinions concerning creditworthiness
- Loan Presentation: Summarize conclusions in Loan Presentations and Loan Reviews
- Market Analysis: Analyze the market (customers) and industry (competition, suppliers, and potential new entrants) and management teams
- Special Projects: Assist with special projects and reporting assignments in Credit Administration
- Data Entry: Provide computer support, including data entry, in the maintenance of the loan analysis systems
- Policy Development: Participate in the ongoing development of commercial credit policies and procedures that safeguard the Bank
- Credit Reporting: Provide and maintain reporting requirements on Bank customers’ credit obligations
- Risk Grading: Recommend risk grade changes
- Loan Review: Complete loan reviews as directed by the Lead Loan Review Analyst or the Credit Administration Manager
7. Credit Analyst Job Description
- Credit Administration: Administers all credit and collection activities related to existing customers
- Collection Oversight: Overseeing collection efforts to ensure adherence to terms, minimize past due balances and avoid material bad debts
- Dispute Resolution: Works professionally with customers and sales personnel to coordinate timely payments and resolve disputes
- Customer Onboarding: Serves as the first point of contact for new business account customers
- Risk Assessment: Works with internal Business Managers to gather appropriate credit information to analyze risk assessment for the Credit Manager’s approval
- Analytical Support: Provides analytical support for credit line reviews
- Treasury Support: Supports Treasury Department functions relating to specialized customer payment programs (Company-initiated ACH/wire transfer/customer-initiated ACH)
- International Credit: Works with specialized international credit tools, i.e., letters of credit, sight drafts and bank drafts
8. Credit Analyst Overview
- Loan Underwriting: Underwrites new and renewing commercial loan requests, including real estate, construction, commercial and industrial, and SBA 7A and 504 loans
- Financial Analysis: Prepares financial statement analysis and analyzes related materials, including accounts receivable and payable agings, information from credit bureaus, and industry-related websites
- Policy Compliance: Understands and applies the bank’s policies and procedures and underwrites all loan requests in compliance with them
- Loan Presentation: Assists the commercial loan officer in preparing the loan presentation to present to the Loan Committee
- Client Meetings: Joins the commercial loan officer in meetings with existing and prospective bank customers
- Package Review: Reviews loan packages, ensuring completion and proper structure for new and renewing commercial loans
- Project Support: Leads or assists with projects that consist primarily of credit administration issues
- Regulatory Compliance: Performs job functions in compliance with all company policies, federal and state rules and regulations as applicable to the position, including BSA/AML, OFAC, and GLBA/privacy rules
9. Credit Analyst Details and Accountabilities
- Limit Compliance: Ensuring that limits going to the credit committees are in compliance with the committee decision and reviewed before the due date
- Credit Assessment: Carrying out prolongations of assigned limits and full credit assessments of new prospects
- Credit Memo Preparation: Creating credit memos, performing risk class assessments and calculating exposure to propose a limit, and finally presenting to the relevant credit committee
- Credit Support: Supporting the Boarding and Activation team as well as Sales in credit-related matters
- Inbox Management: Co-managing the credit monitoring and the Salesforce inbox regularly
- Risk Reporting: Managing ad-hoc credit risk portfolio reporting, business cases for business development and improvements of processes
10. Credit Analyst Tasks
- Credit Analysis: Analyze credit information about prospective and existing customers
- Risk Evaluation: Provide subjective and objective risk-taking and summarize the information in a detailed written analysis for the Credit Manager’s approval
- Collection Management: Maintain collection and chargeback resolution on top accounts
- Customer Communication: Field emails and phone calls from internal and external customers in regards to credit and collection-related questions, including account blocks
- Account Evaluation: Periodic evaluation of top accounts based on payment history, purchase activity, and 3rd party credit evaluations
- Account Updates: Review and monitor new ownership and make necessary changes to accounts
- Policy Maintenance: Assist in enhancing and maintaining department procedures and policies, and resulting changes
- Issue Resolution: Interfaces with customers in resolving customer account issues
11. Credit Analyst Roles
- Financial Spreading: Prepares financial statement spreads and tax return analysis (business and individual)
- Covenant Tracking: Updates covenant compliance checks, which track and document the customer's financial reporting and financial covenant requirements
- Credit Write-ups: Completes low complexity credit write-ups for Bank customers by ASB credit policy, for the Bank's existing and new Commercial customers
- Tickler Management: Tracks the financial reporting and financial covenants of the Bank's Commercial and Commercial Real Estate customers using the Bank's tickler tracking system
- Customer Reviews: Completes periodic reviews of the Bank's Commercial customers
- Financial Evaluation: Completes financial evaluation reviews for various departments
12. Credit Analyst Additional Details
- Risk Management: Maintaining an efficient risk management system for the customer's company portfolio
- Cross-functional Collaboration: Working co-operatively with internal colleagues of Business and Sales Management and consulting
- Credit Loss Prevention: Preventing, reducing and managing credit losses
- Customer Solutions: Propose and implement long-term solutions with problematic or high-maintenance customers
- Collection Support: Support Credit Liaisons in managing cash collection
- Exposure Reduction: Developing financial strategies to reduce exposure in high-risk markets
13. Credit Analyst Essential Functions
- Financial Spreading: Timely and accurate preparation of financial spread analysis for existing C&I customers and for prospective C&I customers
- Due Diligence: Assist with due diligence search, funding and documentation process and coordinating with back office, external counsel and other counterparts
- Portfolio Monitoring: Assist with portfolio management, Loan Monitoring and updating ONTRACK Reports in compliance with C&I and CRE Desktop Procedures
- File Management: Organize and accurately maintain files of customer information
- Client Interaction: Works closely with Team Members and assists with external customers/prospects calls
- Credit Structuring: Developing/structuring Credit Concept Memos, Term Sheets, and Commercial Credit Reports, and ensuring the high quality and fast turnaround of each
- Internal Coordination: Coordinating with internal departments to assist clients with problem solving, loan advance/payment requests
14. Credit Analyst Role Purpose
- Relationship Building: Build relationships with dealers to consult on ways to improve their financial situation
- Credit Analysis: Gather all documentation to conduct a proper analysis of customers' creditworthiness and present it to the Credit Manager
- Workout Planning: Take part in workout plans for high-risk customers
- Risk Monitoring: Monitor orders for risk exposure and ensure the terms are within risk tolerances
- Contract Negotiation: Negotiate contract terms that promote cash flow and mitigate risk
- Risk Mitigation: Understand preferred risk mitigation tools and when to use them appropriately
- Payment Resolution: Work closely with Accounts Receivable Analysts on escalated payment issues
- Policy Compliance: Work within and maintain the Credit policy and procedures
15. Credit Analyst General Responsibilities
- Document Review: Review original documents to understand the nature of new loan requests and SBA-eligible use of proceeds
- Financial Spreading: Spread and analyze financial statements, tax returns, personal financial statements, financial projections, and relevant information from business plans into spreadsheet templates
- Cash Flow Analysis: Determine the cash flow and potential repayment ability of the prospective borrower
- Risk Identification: Review all relevant third-party reports and identify potential risks
- Information Gathering: Search for available data on public websites to support the Loan Presentation
- Loan Structuring: Assist and provide input on corrections in the loan structure
- Narrative Writing: Complete the Loan Presentation narrative write-up, assimilating all relevant facts
- Credit Management: Manage and evaluate a portfolio of accounts for initial and ongoing creditworthiness