Hello there, my name is Richard McMunn from
the interview training company, PassMyInterview.com.
And in this tutorial, I will teach you how
to pass a Credit Analyst interview. So, it
does not matter which organization you have
your Credit Analyst interview with, make sure
you stay tuned, stick around, because I will
help you to pass your interview! And to achieve
that goal, this is what I am going to cover.
I will give you a list of Credit Analyst interview
questions, the ones I strongly recommend you
prepare for. I am going to give you brilliant,
unique answers to tough and challenging Credit
Analyst interview questions. I will give you
some tips on how you can stand out during
your interview! And I will tell you about
FURTHER RESOURCES you can get access to, including
these slides to help you succeed. So, there’s
four reasons why I strongly recommend you
watch it from start to finish. Let's get straight
into the first question, and that is: Tell
me about yourself? So, it is very important
you get off to a flying start in your Credit
Analyst interview. Because this is going to
be the first question asked, make sure you
give a positive, confident answer that focuses
on your ability to match the person specification
for this role. Here's a great answer to help
you. Tell me about yourself? “I take great
pride in my work as a Credit Analyst and over
the years I have been careful to build up
a diverse range of skills that enable me to
excel in the role. I am highly analytical,
I can solve problems quickly, I can work at
pace, I work well as part of a team and I
will always ensure the financial objectives
of my employer are at the heart of everything
I do. I have built up extensive knowledge
of the financial sector and the processes
I use whilst carrying out my duties as a Credit
Analyst are suited to all types of situation.
I appreciate you have many candidates to choose
from; however, the skills, the qualities and
the breadth of experience I can bring to the
role make me, I believe, the ideal person
for the position.” That's a positive answer
that sets you up with confidence for the rest
of your Credit Analyst interview! Now, you
can either pause the video if you want to
and take a note of the questions and answers
as we work through them together. Or, if you
want to wait, I will tell you soon where you
can download my full set of 26 Credit Analyst
interview questions and top scoring answers,
including the ones we are covering today.
Here's the next question. Why do you want
to work for our organization as a Credit Analyst?
Now, the hiring manager wants to know that
you have carried out sufficient research to
convince yourself that their organization
is one you will want to stay working at for
a long period of time. As you already know,
this is a role that requires consistency and
an ability to build up long term client relationships.
Here's another great answer to guide you!
Why do you want to work for our organization
as a Credit Analyst? “I am looking for long-term
employment with the same company as a Credit
Analyst, so prior to the interview, I carried
out extensive research into your organization.
Everything I learnt pointed to the fact that
this is a brilliant place to work. You support
your employees to be the best they possibly
can be; you take compliance seriously and
you are forward-thinking in your approach
to business. The latest news stories on your
website and on your LinkedIn corporate page,
all tell me this is a caring and ethical organization,
and from what I have heard from current and
former employees, it’s a great place to
learn, grow and develop.” That's another
cracking answer! Don't go anywhere, because
I still have more questions and answers to
give you. But when you're ready, if you want
to CLICK THAT LINK in the top right-hand corner
of the video, it takes you through to my website,
PassMyInterview.com, and you can download
my full set of 26 Credit Analyst interview
questions and top-scoring answers, including
the ones covered today. But here's the next
question. What are the 5 C's of credit analysis?
Now, there will be several technical level
questions asked during your Credit Analyst
interview. And this is one of the more common
ones. Here's my example answer to help you.
What are the five C's of credit analysis?
“The 5Cs of credit analysis are character,
capacity, capital, collateral and conditions.
Character is my opinion of whether the entity
is likely to repay the debt. Capacity is the
ability of the borrower to have sufficient
funds to repay the loan moving forward. Capital
is the amount of money the borrower is putting
up themselves. The more they are prepared
to risk themselves, the more they are likely
to repay the debt. Collateral is any security
the borrower is prepared to put up against
the loan. Finally, conditions are the purpose
of the loan, what it will be used for along
with the predetermined repayment terms.”
Now, I like the answer because you are not
just saying what the 5 Cs are, you are explaining
what each one is. So, you are showing a depth
of knowledge in relation to your subject matter.
The next question: When considering whether
to lend to a company, what would you analyze?
Now, of course, when answering this question,
it is important to state that you will follow
the organization's policy on credit and lending
assessments. However, you also need to state
the different elements YOU will analyze, too.
Here's another great answer to help you. When
considering whether to lend to a company,
what would you analyze? “I would look at
various aspects of a company in line with
the operating procedures set by my employer.
I would look at the various financial statements
of the business over the last five years,
including the income statement, the balance
sheet, shareholders’ funds and profit and
loss account (cash flow statement). I would
assess the company assets to see which could
use used as security. I would assess the company
interest coverage ratio to make sure they
can pay the debt plus the interest accrued,
and I would measure additional qualitative
factors outside of financial information to
assess a business’s suitability for lending.
As I said at the start, it would be vital
that I follow your set procedures when assessing
any company for lending and credit purposes
and I would never deviate from those.” That's
another really good answer! The next question:
What is meant by the term interest coverage
ratio? Now, again, your understanding of terminology
and processes will form a part of your Credit
Analyst interview. And when answering questions
of this nature, show you have a thorough understanding
of the subject that is being assessed. Here's
a sample answer to assist you. What is meant
by the term interest coverage ratio? “The
interest coverage ratio is the ability of
a company to pay interest with its available
earnings. We calculate the ratio by dividing
a company’s earnings before interest and
taxes (EBIT) by the interest expenses for
the same period. So, for example, if a business’s
earnings before interest and taxes amounts
to $100,000 and the repayments are $20,000,
the interest coverage ratio is 5. A higher
ratio is more acceptable from a risk perspective
and anything lower than a 2 would not be acceptable
in my experience. Obviously, each financial
organization has a different approach to interest
coverage ratio based on their appetite for
risk and also the 5Cs, which I discussed earlier.”
So, that shows that you thoroughly understand
what the term means and how it is applied
in a credit analysis, sorry, analyst situation.
So, the next thing to do is make sure you
CLICK THAT LINK in the top right-hand corner
of the video. It takes you through to my website
here, which is called PassMyInterview.com.
And you can download my full set of 26 Credit
Analyst interview questions. You can look
all of the questions there, which is great.
So, if you scroll down to the bottom, there
are also some tips on the page. And if you
CLICK THE LINK, then you will be able to get
a copy of those. Make sure you check it out.
Please SUBSCRIBE so you don't miss out. Make
sure you hit the LIKE button as well. Thank
you very much for watching! And I wish you
all the best for passing your Credit Analyst
interview. Have a brilliant day.
