Example SOPs: Commercial Credit Reviewer

Commercial Credit Reviewer SOPs

Creating Standard Operating Procedures for your Commercial Credit Reviewer work can be difficult and take time. That’s why we’ve created these example Commercial Credit Reviewer SOPs so you can jumpstart your SOP creation process. We want to help you set up your Finance systems and processes by taking these sample SOPs and building out your own SOPs template library. By having all your Finance procedures in one place, your team will have the information they need at all times. Let’s look at some Commercial Credit Reviewer SOP examples.

Commercial Credit Reviewer SOP Examples

1. Credit Application Review: The purpose of this SOP is to outline the process for reviewing credit applications submitted by potential borrowers. The scope of this SOP includes evaluating the financial information provided by the applicant, assessing their creditworthiness, and determining the appropriate credit limit or terms. The Commercial Credit Reviewer is responsible for conducting a thorough analysis of the application, verifying the accuracy of the information, and making a recommendation for approval or denial. This SOP may reference other SOPs such as the Credit Risk Assessment and Credit Approval Process.

2. Financial Statement Analysis: This SOP details the procedures for analyzing financial statements of potential borrowers. The purpose is to assess the financial health and stability of the applicant, including their income, expenses, assets, and liabilities. The Commercial Credit Reviewer is responsible for reviewing the financial statements, calculating key financial ratios, and interpreting the results to determine the applicant’s creditworthiness. This SOP may reference other SOPs such as the Financial Statement Preparation and Financial Ratio Calculation.

3. Collateral Evaluation: The purpose of this SOP is to establish guidelines for evaluating the collateral offered by borrowers to secure a loan. The scope includes assessing the value, marketability, and condition of the collateral, as well as determining the appropriate loan-to-value ratio. The Commercial Credit Reviewer is responsible for conducting a thorough evaluation of the collateral, documenting their findings, and making recommendations for the loan’s collateral requirements. This SOP may reference other SOPs such as the Collateral Valuation and Collateral Documentation.

4. Credit Risk Assessment: This SOP outlines the process for assessing the credit risk associated with potential borrowers. The scope includes analyzing the applicant’s credit history, payment behavior, industry trends, and economic factors that may impact their ability to repay the loan. The Commercial Credit Reviewer is responsible for conducting a comprehensive credit risk assessment, documenting their findings, and assigning an appropriate risk rating. This SOP may reference other SOPs such as the Credit Bureau Reporting and Credit Risk Rating.

5. Credit Approval Process: The purpose of this SOP is to establish a standardized process for approving or declining credit applications. The scope includes reviewing the credit application, financial analysis, collateral evaluation, and credit risk assessment. The Commercial Credit Reviewer is responsible for presenting their findings and recommendations to the credit approval committee or management, ensuring all necessary documentation is complete, and obtaining the final decision. This SOP may reference other SOPs such as the Credit Application Review and Credit Risk Assessment.

6. Loan Documentation Review: This SOP outlines the procedures for reviewing loan documentation before finalizing the loan disbursement. The scope includes verifying the accuracy and completeness of the loan agreement, security documents, and any other required legal documentation. The Commercial Credit Reviewer is responsible for conducting a thorough review of the loan documentation, ensuring compliance with internal policies, regulatory requirements, and legal standards. This SOP may reference other SOPs such as the Loan Agreement Preparation and Security Document Checklist.

7. Portfolio Monitoring: The purpose of this SOP is to establish guidelines for monitoring the credit portfolio to identify potential risks and take appropriate actions. The scope includes regularly reviewing the performance of existing loans, analyzing financial statements, and assessing any changes in the borrower’s creditworthiness. The Commercial Credit Reviewer is responsible for monitoring the portfolio, identifying early warning signs, and recommending necessary actions such as loan restructuring or collection efforts. This SOP may reference other SOPs such as the Loan Performance Analysis and Delinquency Management.

8. Credit Review Reporting: This SOP outlines the procedures for preparing and distributing credit review reports to management or relevant stakeholders. The scope includes summarizing the findings from credit application reviews, financial analysis, collateral evaluation, and credit risk assessments. The Commercial Credit Reviewer is responsible for compiling the necessary information, preparing accurate and concise reports, and ensuring timely distribution to the designated recipients. This SOP may reference other SOPs such as the Credit Application Review and Financial Statement Analysis.

9. Compliance and Regulatory Requirements: This SOP establishes guidelines for ensuring compliance with applicable laws, regulations, and internal policies related to commercial credit. The scope includes staying updated on regulatory changes, conducting periodic compliance reviews, and implementing necessary controls. The Commercial Credit Reviewer is responsible for understanding and adhering to all relevant compliance requirements, documenting compliance activities, and reporting any non-compliance issues to the appropriate authorities. This SOP may reference other SOPs such as the Regulatory Compliance Review and Internal Control Procedures

Commercial Credit Reviewer SOP Templates

Looking for SOP templates for your Commercial Credit Reviewer work? We’ve got you covered. You can build out your company SOPs using the sample SOP information above (added to our template) or our team can put together a starter SOPs template based on your Commercial Credit Reviewer work. Get in touch if you’ve got questions about the quickest way to build out your Finance SOPs library.