What is a Commercial Credit Analyst Job?
As the name suggests, a commercial credit analyst job involves analyzing the creditworthiness of businesses and organizations. This position typically falls under the umbrella of financial analysis and is considered a vital part of the lending process for many banks and financial institutions. Commercial credit analysts use their analytical skills and expertise to evaluate the financial health of businesses and make recommendations regarding their creditworthiness.
What Usually Happens in this Position?
Commercial credit analysts play a critical role in the lending process by evaluating the financial health of businesses and organizations. They analyze financial statements, credit reports, and other relevant data to determine the creditworthiness of a business. They also conduct research on industry trends and market conditions that may impact the business's financial health. Based on their analysis, commercial credit analysts make recommendations regarding the amount of credit that should be extended to a business, as well as the terms and conditions of the loan.
Top 5 Skills for This Position:
- Strong analytical skills
- Attention to detail
- Knowledge of financial analysis and lending principles
- Ability to communicate effectively with clients and colleagues
- Proficiency in data analysis and financial modeling software
How to Become a Commercial Credit Analyst:
To become a commercial credit analyst, you typically need a bachelor's degree in finance, accounting, economics, or a related field. Many employers also require experience in financial analysis or lending. Some commercial credit analysts begin their careers in entry-level positions in financial analysis or lending and work their way up to the position of credit analyst with experience and additional education. Continuing education, such as earning a Master of Business Administration (MBA) degree, can also help advance your career in this field.
Average Salary:
According to the Bureau of Labor Statistics, the median annual salary for financial analysts, which includes commercial credit analysts, was $83,660 as of May 2020. Salaries can vary depending on factors such as industry, location, and years of experience.
Roles and Types:
Commercial credit analysts can work in a variety of industries, including banking, finance, and insurance. There are also different types of commercial credit analyst jobs, such as corporate credit analysts, who focus on analyzing the creditworthiness of large corporations, and small business credit analysts, who specialize in evaluating the financial health of small businesses.
Locations with the Most Popular Jobs in the USA:
Commercial credit analyst jobs can be found in many different locations throughout the United States. Some of the cities with the highest concentration of jobs in this field include New York, Chicago, and Los Angeles. Other cities, such as Dallas, Houston, and Atlanta, also have a significant number of commercial credit analyst positions.
What are the Typical Tools:
Commercial credit analysts use a variety of tools and software to perform their job duties. Some of the most common tools include financial modeling software, credit analysis software, and data analysis tools. They also use tools such as spreadsheets and databases to organize and analyze financial data.
In Conclusion:
Commercial credit analyst jobs are a vital part of the lending process for many banks and financial institutions. This position requires strong analytical skills, attention to detail, and knowledge of financial analysis and lending principles. To become a commercial credit analyst, you typically need a bachelor's degree in finance, accounting, economics, or a related field, as well as experience in financial analysis or lending. Salaries can vary depending on factors such as industry, location, and years of experience, but the median annual salary for financial analysts, which includes commercial credit analysts, was $83,660 as of May 2020.