11Cs for better credit analysis in Asia

Character

Character refers to the likelihood that a credit customer will try to repay the debt. This factor is
of considerable importance because every credit transaction implies a promise to pay. The
principal question is: Will the firm (borrower) make an honest effort to pay the debt, of is it
likely to try to get away with something?

Experienced credit managers frequently insist that the moral character of a borrower is the most
important issue in a credit evaluation. Thus, credit reports/trade checking is used to provide
background information on past performances, both for businesses and for individuals. Credit
analysts determine a firms' credit reputation by talking with the bankers, its suppliers, its
customers, and even its competitors.

CIB report to be collected from Bangladesh Bank and others Bank report to be collected. No
matter how character is determined, it is clear that credit history (reputation) is extremely
important in determining whether credit will be granted – both business and individuals should
strive to maintain good credit reputations. Trade checking and various tools of market
intelligence are used in this case.