8 Point Checklist to Assess Risk When Checking Bank References
Risk assessment in banking is easy now. Assess the risk when checking bank references and get the most out of it by following these 8 points checklist.
This checklist is designed to help you get the most out of your bank references.
Bank Reference Red Flags
If your bank reference check uncovers one or more of these items, it's usually a sign of significantly higher risk.
Yes
No
Warning Sign Being Checked
Low account balances in proportion to the size of customer or credit limit needed
High lending balances in proportion to size of customer and depository accounts
Low lines of credit that are fully secured by the bank
Confirmed history of overdrafts or negative account balances
Carefully chosen words by the bank officer providing the reference
Evidence of compliance issues relative to loan covenants
Expiring credit lines or loans without confirmation of renewal or replacement
Recent closure of credit lines
instructor
name
title
image
description
Ins
Editor
Highako Academy
Highako.com is a video-first micro-learning platform trusted by over 10,000+ Credit and Collections professionals. Leverage Highako to drive skill growth with role-specific expert video lessons, and hands-on assessments. Connect and collaborate with the largest credit community and get access to ready-to-use templates.
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KPIs and Reporting
5 Ways to Get to a Yes From High-Risk Customers
Here are some essential tips to consider before working with high-risk b2b customers. Set up a reasonable business relationship and mitigate perceived credit risk.
This checklist is designed to help you get the most out of your bank references.
Bank Reference Red Flags
If your bank reference check uncovers one or more of these items, it's usually a sign of significantly higher risk.
Yes
No
Warning Sign Being Checked
Low account balances in proportion to the size of customer or credit limit needed
High lending balances in proportion to size of customer and depository accounts
Low lines of credit that are fully secured by the bank
Confirmed history of overdrafts or negative account balances
Carefully chosen words by the bank officer providing the reference
Evidence of compliance issues relative to loan covenants
Expiring credit lines or loans without confirmation of renewal or replacement
Recent closure of credit lines
instructor
name
title
image
description
Ins
Editor
Highako Academy
Highako.com is a video-first micro-learning platform trusted by over 10,000+ Credit and Collections professionals. Leverage Highako to drive skill growth with role-specific expert video lessons, and hands-on assessments. Connect and collaborate with the largest credit community and get access to ready-to-use templates.
related
image
tag
title
description
link
contentType
KPIs and Reporting
5 Ways to Get to a Yes From High-Risk Customers
Here are some essential tips to consider before working with high-risk b2b customers. Set up a reasonable business relationship and mitigate perceived credit risk.
