Credit Review
A periodic or event-triggered reassessment of an existing customer's creditworthiness, limit, and terms based on updated payment behavior and financial data.
A credit review is the reassessment of an existing account: does the current limit, term set, and risk grade still fit the customer's condition and the trading relationship? Reviews come in two flavors. Scheduled reviews run on a calendar, commonly annually for stable accounts and quarterly or semiannually for large or higher-risk exposures. Triggered reviews fire on events: payments trending beyond terms, a bureau alert or score drop, an NSF check, a limit repeatedly breached or never used, a request for a higher line, news of ownership change, or lien and suit filings.
A useful review compares the account's own history against itself, not just against policy. Inputs typically include the aging trend and days-beyond-terms trajectory over the last 6 to 12 months, current bureau report and score movement, updated financials for larger lines, exposure versus limit utilization, dispute and deduction history, and any collateral or guarantee status. The output should be an explicit decision recorded in the credit file: limit confirmed, raised, cut, terms changed, security requested, or account moved to watch status.
The economics of reviews argue for automation of the routine and human attention on the exceptions. Most portfolios follow a power law: a small number of accounts hold most of the exposure. Auto-renewing small, well-behaved accounts against a scorecard while forcing analyst review of the top exposures and every triggered account concentrates skilled judgment where a wrong answer is expensive.
See SCREDIT on your own workflows.
A 30-minute walkthrough with the team that built it — using scenarios from your credit operation, not canned demo data.