What Does a Commercial Credit Analyst Do? by David Milberg

What Does a Commercial Credit Analyst Do?

A commercial credit analyst is frequently referred to as a risk analyst. This is a career that is great for a person who is excellent with numbers and has an interest in business. Specifically, a commercial credit analyst helps a company to prosper. The goal of this type of professional is to determine whether a company has the ability to pay back any loans by examining and analyzing the company’s financial documents and history. Generally, a commercial credit analyst works for a government agency, bank or other financial institution, occasionally in the area of commodity brokerages or securities. They usually work with a team and have a lot of interaction with clients and managers.

Educational Background

A person who becomes a commercial credit analyst needs a bachelor’s degree in finance, accounting or business administration. Employers prefer those who have a master’s degree in a specific field, such as Chartered Financial Analyst.

Expected Skills

Of course, the skills expected of any commercial credit analyst are rooted in accounting. This is because this type of professional performs multiple calculations regarding tax returns and financial statements on a constant, daily basis. In addition, a commercial credit analyst should be well versed in the area of spreadsheet programs like Microsoft Excel so that he or she can create reports so that they can compare a company’s financial data from current to previous years. Additional mandatory skills this type of professional is required to have are excellent oral and written communication skills so that he or she can effectively present their findings to a team of managers within the company.

Job Responsibilities

In general, the goal of a commercial credit analyst in any company is to help the company minimize its risk. The professional spends a great deal of time analyzing financial statements and other information regarding the company’s finances. A commercial credit analyst is also responsible for preparing reports to present to his or her supervisor regarding whether the company can afford to take the risk of providing customers with credit. If the supervisor agrees with extending credit, the commercial credit analyst may then be required to create or evaluate a payment plan that would work for the business.

Financial Analyst

Any commercial credit analyst must analyze a company’s finances by looking back at its history regarding financial statements and operations. The analyst considers the company’s performance based on the economy, the performance of competing companies and the talents and strengths within the company itself. He or she can then analyze whether the financial goals of the company are appropriate and feasible.

These are the tasks of any successful commercial credit analyst. The professional holds a very important role in any company to ensure its financial success.

David Milberg is a financial expert in NYC  with nearly 3 decades of experience in the finance industry. He is a long-time owner of Milberg Factors, a factoring and finance company with locations in New York, California, and North Carolina.