Commercial Credit Analyst Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of a commercial credit analyst. You can use our job description template in this article to produce your own. We also provide you with information about the salary you can earn as a commercial credit analyst.
Who is a Commercial Credit Analyst?
A Commercial Credit Analyst is a financial expert who evaluates the creditworthiness of assets, people, or businesses. By evaluating a borrower’s credit and financial history and assessing if their financial situation and the general economic climate are suitable for repayment, commercial credit analysts can predict whether a borrower will be able to pay back their debts.
A commercial credit analyst collects and examines financial information on loans and other credit-related items. This involves looking into a borrower’s history of payments and their debts, income, and assets. The analyst searches for signs that the borrower could be a danger. They use this information to suggest whether credit should be granted or denied, credit limits should be raised or lowered, or additional costs should be levied.
Interpreting financial documents and using ratios to examine a potential borrower’s past and fiduciary conduct is a crucial part of their duties. They evaluate the borrower’s cash flows by comparing the ratios to industry-standard data. Before authorizing a loan for new farm equipment, for instance, a bank credit analyst may review the financial accounts of an agricultural firm.
Commercial credit analysts assess the risk investments carry before deciding on a borrower’s interest rate, credit limit, and loan conditions. They use their research to make sure the lender is safeguarded in the event of a default by the borrower and that the borrower obtains an inexpensive loan.
Analysts could suggest a company loan or line of credit after they note specific risk considerations. These variables might be influenced by environmental factors including the economy, the stock market, changes in the law, and regulatory requirements. When a client’s firm fails to pay its employees, it may be a sign of declining sales and possibly bankruptcy, which might harm the bank’s assets, credit standing, and image.
Commercial Credit Analyst Job Description
Below are the commercial credit analyst job description examples you can use to develop your resume or write a job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
The duties and responsibilities of the Commercial Credit Analyst include the following:
- Ensure that policies and credit risk metrics are consistent across business lines and are in line with the overall credit risk appetite by working with senior leadership in the credit, commercial, business banking, and private banking lines of business to establish commercial credit risk policies.
- Work with business partners to coordinate credit policy initiatives to ensure that lending practices are efficient and adhere to regulatory compliance, risk management, and compliance administration standards.
- Give current clients superior business and financial analyses and speed up the processing of credit requests.
- Keep up with credit administration & compliance trends for the specified geographic locations.
- Analyze a company’s financial records and produce cash flow models to support business loans, renewal requests, and changes.
- Make certain financial statements and compliance documents current.
- Contribute to creating credit evaluation memos assessing a potential borrower’s creditworthiness and create continuous yearly evaluations of current borrowers.
- Prepare quarterly trend analyses with continuous quarterly risk rating assessments and status updates for designated borrowers.
- Aid in creating and analyzing monthly commercial board reports that provide an overview of business connections and loan status.
- Investigate, document, evaluate any necessary adjustment, draft, and recommend current policies on commercial credit risk to ensure they continue to reduce risk in the bank and the industry’s changing environments.
Qualifications
- A bachelor’s degree in business, economics, communication, or a similar discipline
- Master’s in business administration or a relevant study
- Years of significant business and accounting experience
- Solid Microsoft Office and general computer knowledge
- Relevant certification
Essential Skills
Here are the skills you require to excel in your career as a Commercial Credit Analyst:
- Accounting Expertise
- Industry Knowledge
- Computer Expertise
- Communication
- Diligence
- Problem-solving
- Detail-orientation
- Organizational
- Risk Analysis Skill
- Research
- Multi-tasking
- Quantitative Analysis
- Stress Management
Accounting Expertise
A background in accounting is often required to work as a commercial credit analyst. Their usual tasks include balancing ledgers, preparing financial statements, examining data, and other fundamental accounting procedures. It is critical to understand the various lingo used in business, finance, and economics.
Even though most credit analysts have bachelor’s degrees in finance, accounting, economics, risk management, and other relevant subjects, some got their accounting knowledge through on-the-job training and employment experiences.
Industry Knowledge
Commercial credit analysts should have prior experience in their sector to offer accurate assessments and recommendations. Numerous sectors utilize a range of investigational techniques and have varying criteria. Therefore, to produce accurate reports and analyses, a commercial credit analyst has to be knowledgeable about the sector they operate in. Credit analysts should maintain the knowledge of their current sector to make the best conclusions.
Computer Expertise
Many organizations use specialized financial and accounting applications to analyze massive volumes of data. While many businesses offer training in using different computer applications, learning complex software can be facilitated by having a foundation in computers.
Communication
A commercial credit analyst’s duties include composing reports on ratings, financial position, and analysis, which calls for excellent writing abilities. Credit analysts also frequently communicate with clients and management of the business to clarify difficulties and provide information. Additionally, they typically collaborate with other workers in a team, which necessitates continuous dialogue.
Diligence
An analysis can be destructive by a single missing data point or discrepancy in the data collection. Even worse, it may mislead the project as a whole. As a result, paying close attention to even the littlest details is essential for a Credit Analyst.
Problem-solving
Credit analysts’ duties can include assisting clients in achieving their financial goals and objectives. This assignment calls for strong analytical abilities, ingenuity, a solid foundation in the subject area, and a positive outlook on finding solutions—all of which are components of problem-solving. They can establish long-lasting relationships with clients with this skill. Having the ability to handle challenging circumstances is beneficial for lowering company risk.
Detail-orientation
Credit analysts often deal with various information, including financial data, customer personal information, and more. The ability to pay attention to details is one of the most vital qualities that recruiters look for in credit analysts since the information they manage is sensitive and essential to the organization.
Organizational
Credit analysts are to maintain current records of customer information. To be able to swiftly offer information to management or clients as needed, they must keep all of their paperwork structured. They can ensure compliance with rules or requirements specific to their sector by maintaining organization.
Risk Analysis Skill
A commercial credit analyst knowledgeable in risk analysis can anticipate any difficulties that arise while working with financial data and producing reports and suggestions. Managers and business owners should be able to understand the risks involved from a credit analyst’s explanation of why a loan or investment should be granted.
Research
Asking customers questions to learn more about them and confirm their responses are accurate is another typical duty of a commercial credit analyst. A credit analyst frequently manages a lot of data to think of fair judgment suggestions. For instance, a credit analyst in the real estate sector gathers proof through background checks and supporting documentation to confirm that customers can repay a loan promptly.
Multi-tasking
A commercial credit analyst may occasionally need to handle many assignments from different clients at once. Your ability to multitask and, more importantly, prioritize will be helpful in this situation. You must prioritize tasks based on urgency and the client’s expectations while juggling various deadlines and demands.
Quantitative Analysis
A credit analyst’s daily responsibilities center on the analysis of numbers, including statistical data and statistics from the client’s monthly revenue. Advanced arithmetic skills and the capacity for data interpretation are needed for these assignments.
Stress Management
The enormous duties that come with this occupation may push you to the breaking point. The process of risk assessment is rigorous and time-consuming, and you must switch between activities often. Not everyone is suited for this position.
The information above can appear daunting at first, but working as a credit analyst is never simple and never has been. However, a successful term as one might be your entry point into a lucrative field of work.
How to Become a Commercial Credit Analyst
Below are the steps to take to become a Commercial Credit Analyst:
Step One: Obtain a Bachelor’s degree in Business or a Closely Related Discipline
Most commercial credit analyst positions demand a bachelor’s degree as the minimum educational qualification. Professionals in this industry frequently hold degrees in business administration, finance, or accounting. These programs often provide courses in corporate finance, financial planning, banking, economics, statistics, business management, and financial markets.
For students studying business administration or finance, several universities offer a specialization or minor in credit analysis as an alternative. These courses offer more specialist instruction in subjects including financial statement analysis, risk assessment, and loan evaluation.
Step Two: Develop your Banking or Financial Industry Experience
Although a bachelor’s degree is the absolute minimum required for this position, many companies choose applicants with at least two or three years of financial sector experience. Tellers, customer service representatives, loan officer assistants, personal bankers, credit analyst trainees, and junior credit analysts are examples of occupations in banking and finance that need little or no experience.
You can enhance your experience in commercial lending and credit research by working in these positions as an entry-level employee. Additionally, you can get worthwhile networking possibilities that might aid in your search for a position as a commercial credit analyst.
Step Three: Learn How to Use Microsoft Office Applications
Commercial credit analysts use Microsoft office programs to develop spreadsheets and other documents that aid in data analysis. Consider enrolling in a course or reading a manual to learn how to utilize the software as doing so might make it simpler for you to carry out your job obligations.
To further improve your capacity for data collection and interpretation, you could find it beneficial to learn how to use databases and statistical analysis software.
Step Four: Join a Professional Group
Become a member of a professional association that offers training and tools to bankers, credit analysts, and other financial experts. Through such a group’s website, the group can give its members access to classes for continuing education, networking events, and business news. Joining a group might help you advance your career as a commercial credit analyst and keep up with changes in the banking sector.
Step Five: Obtain a Master’s in Business Administration (MBA)
Commercial credit analysts do not need a master’s degree, however, many firms choose applicants with an MBA. An MBA can assist you in developing extra knowledge in leadership and management that may be useful in this position.
A typical MBA program lasts two years and includes a curriculum in business law, accounting, finance, economics, and marketing. You may also want to pursue an MBA with a commercial credit analysis-related concentration or specialization.
Where to Work as a Commercial Credit Analyst
Among the potential employers of commercial credit analysts are:
Financial institutions; credit unions and commercial banks.
Non-bank lenders; private real estate lenders, equipment lending businesses, factoring organizations, and several commercial mortgage brokerages.
Commercial Credit Analyst Salary Scale
In the United States, the average yearly salary for a commercial credit analyst is $62,387, or around $29.99 per hour. This amounts to $5,198 per month or $1,199 per week. The bulk of commercial credit analysts’ yearly salaries ranges from $33,500 to $71,500.
The average commercial credit analyst salary in the UK is £39,423. Salaries may range Between £24,000 and £65,000.
Commercial credit analysts typically make CA$50,952 a year or CA$26.13 an hour in Canada. Most experienced workers earn up to CA$74,025 annually, while entry-level positions start at CA$39,000.
In Germany, the average salary for a commercial credit analyst is €58,068 per year and €28 per hour. Commercial credit analysts make an average pay of €41,228 and €70,262.
Commercial credit analysts earn AU$100,000 per year or AU$51.28 per hour in Australia. Most experienced professionals earn up to AU$136,500 yearly, while entry-level roles start at AU$85,200.
Commercial credit analysts typically make €52,500 per year or €26.92 per hour in Ireland. Most experienced workers earn up to €70,000 yearly, while entry-level positions start at €38,250.
The average yearly salary for an entry-level commercial credit analyst is ₦1,730,000 in Nigeria. The average salary for a mid-career credit analyst is ₦3,500,000.
