Lending Nuggets for Credit Professionals

Waiting to learn from your own mistake is detrimental to your career life, don’t ignore the wise words of those that have gone ahead. Below are some factors to put into consideration:

1. 1. Never work alone in lending because then, you have only one opinion. Teamwork is a recipe for success in lending.
   2. Procrastination leads to looming deadlines and decision by panic. A transaction that is hurried is the one that goes bad most of the time.
   3. A good guy attitude of accepting customer information at face value will lead to a short but spectacular career in lending. Facts and figures must be verified before approving a loan.
   4. Don’t be stampeded into a decision by unrealistic time frame. There should be no urgency in lending at the expense of approval process.
   5. Never be submissive and forced into making bad decisions. Always be firm in obtaining all the information needed for a credit decision.
   6. Never promise what you cannot deliver to avoid destroying your credibility and reputation.
   7. Factor both qualitative and quantitative information when making lending decision.
   8. Never place your faith in a volume relationship rather than quality one. You will have lots of work and activity but little profits.
   9. Purpose of the loan is a critical factor in loan approval and failure to identify purpose is a ground for a bad loan.
   10. Avoid sitting at your desk all the time, go out to visit your customers to see how business operates.
   11. Confine your relationships with clients to loan and credit problems. Don’t become a friend or confidant, or you may be in conflict of interest in the future.
   12. Putting your faith in the future and developing a narrow focus on documentation leads to a lazy mindset and creates a loan officer who is reactive
   13. Always remember that a loan must have at least two ways out: approving loans based solely on cashflow will lead to a higher proportion of bad debts than ones approved with the full backing of security.
   14. Always remember that a loan must have at least two ways out: approving loans based solely on cashflow will lead to a higher proportion of bad debts than ones approved with the full backing of security.

To Start a credit career write to us through info@tumainiinstitute.ac.ke or call us 0704-147682