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What is Credit Planning?

Updated: Jan 31, 2022

Credit Planning is to set out procedures for measuring the credit-risk exposure within the group; to define and assess the risk of losses associated with credit extended to customers, financial investments, and counterparty risks concerning instruments.

credit planning

Below are some things we could help/assist you with:

1. Consolidation Loans

A loan is made to merge numerous debts into one loan. This is a simple way to simplify or lower down payments if you have multiple credit card accounts.

2. Credit Counselling

This can be a helpful first step to reviewing your debt. Also, Credit Counsellors can help you on how to budget, spending habits, and credit use.

3. Debt Relief

It is a situation wherein the amount owed is condensed. Banks allow you to pay a partial amount to resolve your debt, a lump sum that is less than the full amount that you owe.

4. Financial Management

This is about creating profit for the business and ensuring an acceptable return on investment (ROI). This can be accomplished through business financial plans, setting up financial controls, and financial decision-making.

Credit Union Strategic Planning Process

What is Credit Union?

Credit unions are nonprofit groups that exist to serve their members. Similar to banks, credit unions also accept deposits, create loans and provide a wide arrangement of other financial services. They provide a safe place to save and borrow at reasonable rates for member-owned and cooperative institutions.

Credit Planning Process and Importance

The credit process begins with an investigation of the borrower’s credibility and willingness to pay for the loan.

The following are the things to be assessed:

  • Borrower’s current financial condition.

  • Borrower’s ability to survive opposing conditions or “stress.”

  • Borrower’s credit history and projected repayment capacity.

  • The optimal loan structure, including loan amortization.

  • Collateral pledged by the borrower and qualitative factors, such as management, the industry, and the state of the economy.

Its importance is that this will help you to plan the things you needed, such as a car loan or credit card, based on your capacity to pay. You need to improve your credit to guarantee that you will be qualified for loans when you need them.

What is a strategic plan?

Strategic planning is an instrument for employees, frontrunners, and board members so that everyone will know where the credit union is going. The strategic planning process is a series of steps your credit union takes to determine its vision, missions, and goals.

What is Succession Planning?

Succession planning is a strategy for passing leadership roles to any person in the company capable of the position. This is to ensure that business will continue to run smoothly after a leader of a company retires, accept new opportunities, or pass away.

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