Tools & Resources KazMicroFinance: How to Assess Client Businesses

KazMicroFinance: How to Assess Client Businesses

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KazMicroFinance shared with the Campaign their PowerPoint training for loan officers, “How to Assess Client Businesses.” This short presentation trains loan officers in how to thoroughly evaluate a potential client.

KMF_easy_resizeAs noted in Principle 1, Avoidance of Client Over-indebtedness, all financial institutions should carefully establish the borrower’s ability to afford their loan and repay it. Borrowers should be able to handle debt service requirements without sacrificing their basic quality of life. Similarly, the institution takes adequate care that non-credit, financial products (such as insurance) extended to low-income clients are appropriate to their needs and means.

KazMicroFinance shared with the Campaign their PowerPoint training for loan officers, “How to Assess Client Businesses.” This short presentation trains loan officers in how to thoroughly evaluate a potential client. Loan officers are required to visit the client’s business location and meet with the guarantor. During the visit, the loan officer completes four forms: balance sheet, income statement, cash flow analysis, and cross-check analysis (verification of the viability of the business from sources other than the business owner). These measures help loan officers make quality disbursement decisions and minimize the risk of client over-indebtedness.

Download the PowerPoint (English) »

Download the PowerPoint (Russian) »