Analysis and assessment of the creditworthiness of borrower

In modern conditions commercial banks and enterprises inadequate use the credit opportunities for innovative projects investment to ensure the continuity and acceleration of the reproduction process and timeliness of settlements with suppliers and creditors. Banks need to significantly change the approach to the analysis and assessment of the creditworthiness of borrower and methods for their implementation. This article clarifies the concept of "creditworthiness", defines list of tasks to be solved in the process of analysis and assessment of borrower's status. The information provided by a borrower to the bank, the information that is available directly at the bank, and external information is used as the source data for the analysis of the creditworthiness of borrower. Source data is used to assess the creditworthiness of borrower from legal and economic points of view. From a legal point of view it is necessary to explore and assess the legal capability of a potential borrower (the organization) to make a credit transaction. From an economic point of view, to assess the creditworthiness of borrower the factors and conditions should be identified, in which he will not be able in full and in due time to pay his credit debt. The purpose of assessment of the creditworthiness of borrower from legal and financial points of view is in aspiration of a bank to reduce risks of non-return loan. For this analysis, a bank needs for information describing the financial status of borrower, which makes it necessary to study the financial and accounting reports of the organization, information about cash movement on the borrower's bank accounts, information about the borrower's potential previous cooperation with other banks and insurance companies. The article discusses the various options for methods of solving this problem by the banks, investigates modern trends of borrower's creditworthiness assessment, and proposes method of calculating the borrower's rating on the basis of the expert method and the method of paired comparisons.