Creditworthiness check

What is a credit check

The credit check is used to monitor and examine personal and factual criteria of a company seeking credit. A credit institute undertakes this on the basis of a mostly standardized credit application in order to be able to assess the credit risk. The creditworthiness check areas are:

legal situation

The legal situation of the applicantto determine whether he is creditworthy, in particular legal capacity, power of representation and property regime. For lending it is important whether z. B. spouses live in the statutory matrimonial property regime or have agreed separation of property.

personal circumstances

The applicant's personal circumstances, especially in the case of personal loans not secured in rem, e.g. payment behavior, business ethics, reliability in the performance of contracts, business or professional qualifications.

economic situation

The applicant's economic situation, e.g. B. the structure of assets, capital, expenses and income, liquidity and the profit situation. The annual financial statements provide important information.

Further information can be obtained from inquiries, company visits, information from public registers. These are e.g. B. Commercial register, land register, property register, association and cooperative register.

Loan application

If the loan application is granted, there is usually a limited loan approval. When the borrower submits the declaration of consent to the credit institution, the loan agreement comes into effect. After the credit has been allocated, credit monitoring is carried out at certain time intervals, primarily in order to identify changes in the economic situation, in the collateral and in the use of funds.