4 Important Reasons to Apply for a Credit Card

credit card

While you may be inclined to stick with your debit card or carry around cash, using a credit card has its own benefits. In fact, with a credit card, you can both save on your spending and gain from a better purchasing experience. While being too dependent on your credit card and using more than you can repay can lead you to debt, prudent use of this tool can improve your financial health. So, if you are wondering if you should go for credit card apply, take a look at its benefits to make the right choice.

Convenience of credit

One of the major perks a credit card brings to the table is that it is universally accepted. This isn’t always true for your debit card. Additionally, credit cards give you increased purchasing power, allowing you to make big-ticket purchases without dipping into your savings. However, be wise when using a credit card as you alone are responsible for its repayment.

Financial security and fraud protection

Having your debit card skimmed, stolen or subject to fraudulent transactions is money stolen right out of your account. This however, is not the case with credit card, and due to that fact lenders provide you with a lot more security when it comes to credit cards. Some lenders such as Bajaj Finserv let you disable your credit card from your smartphone if you ever suspect fraud. Additionally, you also enjoy financial security in the instance that you’ve paid for a service but it wasn’t carried out. Disputing transactions is extremely simple and in most cases the transaction is reversed as soon as you report it.

Rewarding features to help you save

The reward system offered by credit cards is a favourite among consumers simply because of the value it adds to the purchasing experience. Some issuers let you earn points based on the transaction amount or the number of transactions and these points can be then redeemed for exclusive products and discounts. However, it doesn’t stop there. Certain issuers have collaborations with brands and offer additional exclusive deals on purchases made at those stores. For example, Bajaj Finserv RBL Bank SuperCard allows you to save up to Rs.55,000 annually.

Increase in credit score

This benefit of a credit card is especially important to those with a low credit score or without a credit history altogether. A factor that determines your CIBIL score is your repayment behaviour and credit history, and so, you can use a credit card for this purpose. Making consistent credit card bill payments will add points to your credit score and you’ll see an increase in no time! This will help you secure credit in the future on favourable terms.

These are the benefits that speak for the popularity of credit cards. Besides these, several issuers also give you access to exclusive offers through their various collaborations and this can greatly impact your quality of life for the better. This can be in the form of airport lounge access, special reservations and in some cases, even complimentary amenities. You can enjoy all of this and more when you pick the right issuer and one such option is the Bajaj Finserv RBL Bank SuperCard.

The credit card offers on the SuperCard are some of the best in the market on purchases made for travel, food, entertainment and even utilities. You get to enjoy special discounts, cashback offers and all your purchases earn you reward points, which can add even more value to your future purchases. Additionally, in emergencies you can get an interest-free loan for 90 days on your credit limit and even withdraw interest-free cash from credit card for up to 50 days from any ATM. To apply for this credit card online, all you need to do is check your pre-approved offer and view a customised deal and enjoy instant approval.


6 Important Features of Online Ads

Marketing Strategy Planning Strategy Concept

Online stores are beneficial for both the owners and the customers. So, lets check out the features of online ads:

  1. Real results

One of the most important features of online ads is it gives you the opportunity to know the real results. For example, you can easily track conversions, the overall cost per purchase that will help you understand the success of your online ad strategy and ad campaign.

  1. Affordable

Online ad making is an affordable process unlike traditional ads that needs millions of dollars to me made. It is also a long and time-consuming method to bring traditional ads into the market.

  1. Easy user interface

Most of the online ads are posted on a good website that has easy user interface. So, it is easy to navigate and helps the shopper get exactly what they want faster. Moreover, these websites have shopping categories, the options to add filters and price comparison capabilities.

  1. Fast results

Online ads give you fast results and can reach a wide range of audience within few minutes after posting an online ad. There are various ad posting websites where you can get instant result after posting your ad.

  1. Understanding your target audience

You can easily understand your target audience with the help of online ads. As you can find the click rates on your advertisement. If your ads are getting less clicks you can rethink your ad strategy and improve your ad campaign.

  1. Flexibility

This is one of the most important features of an online ad that it is flexible in nature. For example, if your online ad is not working with a certain segment of the audience there is always a scope for improvement. You can either make changes to your ad copy or landing pages with valuable inputs from a good copywriter.

Data access – You can access data in digital advertising with the help of online analytics tools. This will let you analyze which tactics are best working for you and which plans are not. Besides you can examine customer data like the keyword data and make any needed changes. Most importantly you can measure the effectiveness of the ad campaigns by knowing the conversion period. With the help of these data it is easy to find out the areas that needs improvement in your ad campaigns and ad procedures.


Therefore, posting online ads on a good and trusted website is a great way to generate revenue and get a good return on investment. Customers are also happy as they get a good deal by clicking on the ads and purchase their required products instantly. Besides there are various deals available on the online stores of several countries. For instance, there is a good deal in UAE.

So, it is a good idea to post online ads to get access to the numerous benefits that it provides for the owner as well as consumers.

Benefits of study abroad consultants

student exam

Many students are moving to abroad for higher studies. They want to go abroad to get exposure, to be independent, to develop the cultural values of other countries, to taste life and new experiences. Every year, a lot of students go abroad, and they are very excited about studying abroad and start a new chapter or journey of their life. For that, they need the help of a study abroad consultant.

Students and their families are always confused and lost in choosing the best country, college, university, and other aspects. Study abroad consultants provide them the necessary guidance about the courses they can take according to their academic qualifications. They provide guidance related to the universities and their accommodation. They provide detailed information regarding documentation, financial requirements, and students are given time for the submission of documents for further procedures. The study abroad consultants coordinate with the students and the university to secure an admission. They answer all the queries and make the journey and landing of students thrilling. Here, below are the benefits of the study abroad consultants:

  • Educational loans: Overseas educational consultants provide information about financial help. They guide their families about banks and their loans scheme for students studying abroad.
  • Career counseling: Counseling makes the students take the right decision to make their future bright. Counseling helps the students in knowing their area of interest, what stream or career they want to opt for.
  • University selection: Study abroad consultants by checking the student’s profile give them guidance on finding the best university, having global recognition, and providing excellent education.
  • Admission processing: The experts of overseas education consultants help the students after selecting the university to fill the admission forms. The experts of overseas education consultants provide the details of universities, fee structure, and facilities. It makes it easier for the students to select the university according to their budget. They prepare and collect the necessary documents and apply for a visa.
  • Accommodations: Study abroad consultants tie-up with the universities and provide them accommodations to make them relax. Universities provide various facilities like free airport pickup, competitive tuition fees, secure accommodation, and free health insurance.
  • Visa: Study abroad consultants make the students prepare well for interviews. Visa firms conduct the interview process. As if students apply by themselves, it will not be easy to get the visa approval. Even a minor mistake in the visa can delay or reject your visa application. The consultants provide detailed information about visa processing. The overseas education consultants are always updated with immigration policies and visa checklists.
  • Guidance: The study abroad consultants provide the necessary assistance to the students regarding finance, lifestyle after the colleges and universities send the acceptance letter. They provide guidance related to country, city, and all other information required by the students.
  • Safety: The study abroad consultants provide the safety to the student’s right from the filling of an application form to being selected and receiving a visa. They take all the responsibility of the students and provide travel insurance.

The study abroad consultants support the students at each step and help them in giving proper assistance and clear all doubts. They provide all the information related to studying abroad.

How to Start a Profitable Tech Blog?


Tech is the hottest niche that blogging startups choose nowadays.

Tech is an ever-growing niche, big tech giants uncover new technologies, bloggers, and other people and Go about them. More and more people are in need of the latest tech tutorials, guides, and ways to properly implement tech in their lifestyle.

But, wait. I will tell you certain belongings you got to consider before starting your general tech blog in India.

Here are the ideas for starting a profitable Tech Blog

Finding your Niche

Technology is ever-changing and there always seems to be a replacement piece of tech to exchange for something that’s obsolete. That’s why having a technology blog in India isn’t a nasty idea. If you’re curious about tech, you’ll wonder how you’ll start an honest tech blog.

Well, your first option would be to seek out your niche. This is often a selected topic that you simply could also be curious about. You would like to specialize in something that has less competition, but still enough to possess an honest audience.

Keyword Research

Keywords define websites these days; that’s the tough truth. Keyword analysis from giant search engines reflects an equivalent fact. There are many keywords associated with your niche and you ought to remember the way to use them for the advantage of the technology blog.

By knowing the mandate keywords, you’ll study your competition like other tech blogs. This may certainly motivate and supply a special perspective to seem at tech updates.

Blogging takes time

Blogging takes time to point out results. Because it’s directly hooked into search and clicks for revenue. Good organic search visitor is required.

For this, frequent updating is required.

You should drive good website visitors, especially organic. You would like to figure hard and obtain authority for your blog.

If you’re a hobby or a part-time blogger, I counsel you to handle just one tech blog.

If you have already got one or more blogs, I counsel you to remain far away from starting a general tech blog in India, that demands frequent content updating.

Creating or selecting an honest design

Now few belongings you got to skills to form your blog appealing and attractive. in any case, your blog doesn’t sort of a book, to write down continuously on a blog, parallel you would like to point out interest in the design interface part also. So, you’ll quickly create an everlasting impression of your blog with an excellent design. a superb-looking and fast-loading blog has always attracted back its audience. It helps you to urge an inexpensive bounce-rate

Getting Website Visitors and Social

Once you’ve got established your blog, socialize yourself let all blogging spheres know your presence Bookmark the articles you write and submit them to your favorite Bookmarking websites like Stumble upon and Reddit. Pin images of your post on Pinterest. Make the most out of Twitter and Facebook. Remember this is often an organic search visitor but they’re regular, and they are a high audience.

Wrapping up

If you are a full-time blogger, starting a Tech blog might not be a drag for you as you’ve got enough time.

If you are a part-time blogger, if you’ve got a minimum of 2 hours each day for blogging, with no other blogs, then you’ll consider starting a Tech blog. Having only 2-3 hours each day for blogging and getting to manage multiple blogs may be a very bad idea. You can grow your skills & knowledge as you start and work on the tech blogs. This makes you get to know things about different technical & business-related technologies, work, updates, and many more.

It’s always good to start out with a distinct segment site and work towards it.

The services provided by the best astrologer to provide consultation services


Many people believe in astrology and seek for astrological consultation. Astrology is the study of planets and their impact on a human being. The astrologers can make predictions based upon the position of planets of an individual during birthtime. They also provide solutions to their problems suggested them certain practices. The people should find an astrologer who is genuine and can make accurate predictions. People should not blindly believe any astrologer because he/she may simply want to collect fees. Some people even exaggerate the problem of an individual and demand additional fees. A good astrologer does not demand higher fees, but people bestow those gifts or money. A person can meet the best astrologer for online consultation.

Finding the best astrologer online

A person can find an astrologer online who can provide the best services. They can provide solutions to many problems. They suggest some ways to resolve the problems of the life. They suggest some mantras to some people. For some people, they suggest some prayers or puja to be performed. The astrologers suggest some people to wear rudraksha or a ring. They suggest certain people to wear gemstones. So, they suggest in different ways depending upon their natal chart.

They provide free services and paid services to the people. Some of the free services provided by the people are horoscope matching, recommending gemstones, free prayers, etc, so, they provide paid services to the people also such as business report, health report, romantic compatibility, etc. If any person is experience any problems of the job or business, then they can consult for best astrologer for online consultation. They consult the astrologer when they undergo huge financial loss. A student can meet an astrologer to choose the right career path. The horoscope or the natal chart often describes the strengths and general attributes of an individual. So, the astrologer can access their strengths and    give detailed information about their career path. So, when people even experience any major problems in life, they consult astrologers. Some people are searching for a life partner and want to seek a partner who is ideal for them. They should know if a person can match his compatibility with his life partner.

If somebody wants to perform a puja in their homes, then they can book pandit for puja. The pandit usually performs rituals in the house to create peace and harmony in a place. They provide in-depth analysis about a person’s psychology. They offer different types of emeralds to the people depending upon the situation such as emerald, red coral, blue sapphire, yellow sapphire, hessonite etc. They usually suggest different gemstones depending the zodiac signs of the person. They perform some online pooja services for different issues such as successful career, love marriage, good health, special pooja etc.

On the off chance that someone needs to play out a puja in their homes, at that point they can book a scholar. The pandit as a rule performs ceremonies in the house to make harmony and concordance in a spot. They give inside and out examination about an individual’s brain research. They offer various sorts of emeralds to the individuals relying on the circumstance, for example, emerald, red coral, blue sapphire, yellow sapphire, hessonite and so on. They for the most part propose various gemstones depending the zodiac indications of the individual. They play out some online pooja administrations for various issues, for example, fruitful profession, love marriage, great wellbeing, exceptional pooja and so forth.

The astrologer can book pandit for puja to perform some of the most important rituals. If a person’s wants to become successful in their career or earn higher profits, then they can consult an astrologer. They provide practical solutions to the problems that they experience.

Shine In Winters With Sterling Silver Snowflake Ornaments

Winters are the most mesmerizing time of the year where nature shows its bliss in the most amazing ways. The coldness of the weather, the warmness of boots, and magic of snow all mount together to be the flawless winter season. There are enough fashion trends and assortments for women to embrace the winter’s style statement.

However, the only crazy dilemma one faces is the selection of perfect jewelry that goes well with this season. Surprisingly, sterling silver snowflake ornaments are the options that make every fashionista’s dream comes true in winters.

Let’s walk on the path of adornment and know about the beauty of snowflake ornaments.

What Is So Beautiful About Snowflake Jewelry?

When it comes to flaunting the fashion statement in the winter season, there are plentiful and classy options that make one look no less than a queen. However, there are limited choices in terms of jewelry and accessories to embellish the winter’s look as everything from tip to toe is fully covered. Silver snowflake ornaments are one of the picture-perfect options that only befit with winter’s style but also adds cuteness and prettiness to the look.

Below are the reasons that make you go fascinated about snowflakes accessories. Have a look!

Delineates Purity: The very first snowflake in the winter season when held on our palm or touch with a tongue holds a lot of special and pleasant feelings. It’s all about a scenario of serenity when snowflakes swirling from the sky fall, making the land look white and pure. In connotation to the same feels, snowflakes ornaments are meant to symbolize the aspect of purity and magic.

Represents Uniqueness: Snowflakes accessories when worn help to express the element of uniqueness and individuality. The amazing fact behind the notion is that no two snowflakes are the same. Each of the water molecules that results into snowflakes because of the season’s impact comprises unique patterns and characteristics. Thus, with silver snowflakes ornaments, you can embrace fashion in a unique way.

Portrays Perfection: Another beautiful symbol of snowflakes is perfection. The shape of every snowflake is perfectly geometric, making the snowfall look astonishingly uniform. Likewise, your favorite snowflake jewel can let you flaunt the symbol of perfection through your fashion statement.

Manifest Happiness: Snow is not merely the attribute of winter, but it also marks the sparkling holiday season and fest of Christmas, where everybody unites to spread happiness. If you desire to choose special jewelry for Christmas celebration, nothing is as perfect as a sterling silver snowflake pendant, bracelet, or earrings.

What Are the Different Assortments of Snowflakes Jewelry?

Snowflakes are winter motifs that grace up the fashion look of a woman when worn. Not only this, but it let one feel the pleasantness of snowflakes swirling down straight away from heaven.

With all such wonderful notions, you can opt for the following options in snowflakes ornaments:


#1. Sterling Silver Snowflake Earrings

No celebrations can go complete without wearing earrings. If you are fascinated to have a Christmas bash in the most fashionable way, having sterling silver snowflake earrings is an amazing idea. It goes in harmony with every color and every style of dress.

#2. Sterling Silver Snowflake Pendant

The blend of silver’s shine and sparkliness of snowflake makes the sterling silver snowflake pendant a flawless option to enhance winter’s look. Moreover, the flat design and polished look will benefit even with the high-neck winter clothes.

#3. Sterling Silver Snowflake Charm Bracelet

If you think that a jewelry look is incomplete without a beautiful bracelet, then wearing a sterling silver snowflake charm bracelet is perfect to celebrate winter’s fests and occasions. The simple yet elegant design of the bracelet goes well with women of all ages.

Truly, winters and wonders are in tune with each other. Looking for the winter’s jewelry collection to enhance the fashion statement is a cloud nine feeling. If you too want to embrace the winters with a unique and aesthetic fashion look, buy sterling silver snowflake ornaments now and enjoy the blissfulness.

Points to be Considered while Selecting the Wastewater Treatment System

waste water treatment

Water plays an important role in our life as we cannot even live without water. The importance of water is the same for the household sector as well as for industries. Their production process largely depends on water. Before setting up any industry there are so many things which you have to take into consideration. Availability of water as well as provision for wastewater is two of the important attributes which you must take into consideration. Every day a large quantity of water is being used for household and for mining purposes. This increasing number also leads to an increasing demand for wastewater treatment.

Wastewater management holds huge importance for the wellbeing of the society as with the increase in the number of industries, the water quality is dwindling every moment which imposes a huge risk for the existence of mankind. The process used to eliminate contaminants from wastewater or sewage to convert it into discharge that can be restored into the water cycle with the least impact on the environment is known as wastewater management. Effluent treatment is extremely vital for our water bodies as if left untreated it is capable of causing serious environmental issues.

You must pay attention to the recycling of water as well as on the filtering of water. That is why water treatment plants, wastewater treatments, facility management is gaining so much importance. Wastewater treatment is further divided into two categories which include sewage treatment and effluent treatment. The different technologies are available to be used in both types of treatments. Waste water treatment manufacturer is providing the best treatment solutions to the industries as well as to the household. When a large amount of water is being used the quantity of wastewater also increases. Before investing in any wastewater treatment system here are some points which are to be considered:

  • Find out details of other various treatment systems: There are many wastewater treatment systems available in the market about which you can search. You can find out which wastewater treatment suits your needs so that you can easily make your decision. The different treatment systems offer a different set of features and benefits that you must consider well in advance.
  • Finding out the costs involved: The costs associated with the different treatment plants can differ from company to company. You must not only focus on the features of the treatment system but also the costs involved. The more the features offered the more will be the price of the treatment plant so consider it well in advance.
  • Check features of tank and water controlling techniques: As we have already discussed that there are different features offered and you must check the basic features that must be present in every wastewater treatment plant. The water is being controlled using a different set of techniques so that it won’t mix with the water for consumption or with other water systems. So consider all those features well in advance before making your decision.
  • Should meet with the environmental standards: All the standards are prescribed by the environmental safety department for the various treatment systems. Choose the one which meets all the prescribed standards and should not harm the environment at any cost.

So, these are the following points which you must consider while choosing the wastewater treatment system. Many residential water treatment companies are helping the household sector to install and use the best wastewater treatment system for them. You must choose the one which is compatible with the environment so that it won’t harm any type of natural resource.

10 Most Beautiful Beaches in the World

Everybody knows that Summer comes with shiny and glorious sunshine and a genuine wanderlust for something new and drawing something on a lavish shore. With an endless stretch of brilliant sand, a secluded white bay with shining turquoise waters, or anything in the middle. 

Whether you are planning for a family trip or a solo trip? You can experience the best travel experience at a more affordable and convenient price? Trip to the world’s best beaches will give you a memorable experience. Enjoy the travel experience with low fares by booking flight tickets through the alaska airlines official site and get an instant booking at very reasonable rates. Book now and visit these beautiful beaches for the wonderful experience that you can have here.

From Spain to Seychelles, here are 10 of the world’s most lovely seashores: 

Navagio Beach, Greece 

A little, confined bay on the north-west shore of Zakynthos Island, Navagio is generally viewed as the most dynamite seashore in Greece, and one of its most shot sights. Encircled by steep precipices and the luminous turquoise waters of the Ionian Sea, the sugar-white seashore – with its notorious old wreck – blows your mind and carries delight to your heart. 

Navagio beach is just available by vessel, however, it’s surely worth the excursion. 

Anse Source d’Argent, Seychelles 

One of Seychelles’ most well-known seashores, yet segregated enough to spring at the top of the priority list the possibility of heaven, Anse Source d’Argent stands apart for its ideal white sands fixed with influencing palm trees and uncommon stone rocks that drop drastically into a completely clear greenish-blue ocean. The seashore is situated on the curious island of La Digue, where life moves gradually and advancement is kept to a base. 

Sweetheart’s Beach, Cabo San Lucas 

In spite of the fact that the sentiment that accompanies the name probably won’t be so apparent nowadays, Lover’s’ Beach (Playa del Amor) is still amazingly excellent. It lies close to the beautiful Land’s End, confronting the Sea of Cortez, and intrigues guests with its awesome characteristic setting, tucked between lofty stone developments. The unmistakable blue waters, wealthy in marine life, make it a genuine jumping/swimming heaven. 

Whitehaven Beach, Australia 

Waters in incalculable shades of turquoise and the most flawless white silica sands make Australia’s Whitehaven one of the world’s most excellent seashores. This gem extends more than 7 km along the Whitsunday Island, and on its northernmost tip lies the awesome Hill Inlet, a striking scenery of splendid blue waters and twirling sands. 

Phra Nang Beach, Thailand 

Shielded by taking off limestone bluffs and washed by the shallow emerald waters of the Andaman Sea, Phra Nang on the Railay landmass is one of Thailand’s most dynamite seashores. The territory is particularly popular among rock climbers who come here to take in the jaw-droppingly lovely view or bounce off the scary bluffs and must be reached by longtail pontoon from Ao Nang. 

Wai’anapanapa Black Sand Beach, Maui 

Settled in Hana’s magnificent Wai’anapanapa State Park, simply off the Hana Highway, between lavish tropical greenery and dark magma bluffs, this surprising seashore isn’t only a fix of dark sand, yet in addition, a sacred place deeply rooted in the Hawaiian culture. Sensational landscape aside, this dim stretch of sand and stones is likewise home to baffling freshwater caverns and old graveyard. 

Pfeiffer Beach, California 

The impossible to miss purple sand and sensational seaward shakes, alongside the mysterious light that happens for two or three days every year on the enchanting Pfeiffer Beach in Big Sur, California, make this spot a stand-out encounter for picture takers from everywhere throughout the world. 

Ses Illetes, Formentera 

Seemingly one of the most excellent seashores in the Mediterranean Sea, the Spanish Playa de Ses Illetes on the pretty Balearic island of Formentera has quite a few fixings: clear blue waters, Caribbean-white sands, and a laid-back, bohemian air that just gets under your skin. 

Ipanema Beach, Rio de Janeiro 

The hottest seashore on the planet, Ipanema, is the place sea shore stylish and epic regular excellence mix consistently as days fall into evenings on sexy samba rhythms, and delightful tanned sun admirers acclaim the scene of the sun setting over the water. 

Last words

What’s your preferred beach across the world? We have compiled a list of 10 most beautiful beaches in the world where you can spend the best time ever with your family or friends. Are you planning to visit any one of the beaches or more than one? Just plan your trip and get your booking done in advance through the malaysia airlines official site and find the best vacation offers at very affordable rates. You can also book a multi-city flight if you planning to visit more than one of these places. So, visit these beautiful beaches and spend quality time there.


Everything you Need to Know About Credit Analysis

If you are seeking debt for a commercial real estate project, you need to understand the basics of credit analysis. It is a step in the credit approval process that evaluates the financial strength of the borrower. So, if you want to perform credit analysis on your own, here is a guide for you. Keep in mind that you also need to be aware of spreading financial statements. Banks use special tools for spreading financial statements, underwriting financial statements and other steps in the process. However, you can use a financial statement analysis template for financial statement analysis. Now, step into the shoes of the bank.

Credit Analysis

5 Cs

The following are the 5 Cs of credit analysis:

  1. Capacity
  2. Collateral
  3. Capital
  4. Conditions
  5. Character

●       Capacity

Does the borrower have the ability to pay back the loan? To analyze capacity, analyze the borrower’s historical and projected cash flows. Review financial statements and tax returns of the past 3-5 years to determine a cash flow figure. It is defined as EBITDA (Earnings Before Interest, Taxes, Depreciation, and Administration).

●       Collateral

You need a plan B if the borrower is unable to pay back the loan. Collateral provides you with extra assurance that if the borrower is unable to generate the much-needed cash flow, the loan won’t go bad. Collateral includes the following:

  • Real estate
  • Equipment
  • Inventory
  • Receivable

In the underwriting process, a third-party appraisal is required to place a dollar value on collateral. Loan to Value ratio caps the loan amount.

●       Capital

If the borrower’s cash flow turns negative for one or two seasons, sufficient capital provides a “cushion”. The number is calculated using the debt to equity ratio.

●     Conditions

The lender makes sure that the company will not be affected by adverse industry trends. It is good for the lender if the borrower has a competitive advantage in the economics of the industry and economic environment.

●   Character

This is the most important factor as the borrower must be trustworthy. It is important to understand the history of the borrower.

Financial statements spreading

The lender gathers and reviews the borrower’s financial statements and tax returns of the past 3 to 5 years. This is followed by the credit analyst spreading financial statements. You can use Excel for spreading financial statements. Banks use specialized software for this step.


Spreading financial statements allows the analyst to compare financials over different time periods.

Credit Analysis Ratios

The bank speaks to the borrower and performs a full written financial analysis. This return analysis involves the positive and negative trends that affect the borrower’s business. The following are the most common ratios considered in credit analysis:

●       Liquidity Ratios

Liquidity is the borrower’s ability to pay short-term obligations as they come due. The ratio is less important for a borrower with stable cash flow and operations. If the borrower’s business goes through ups and downs in revenue, liquidity ratios become important.

●       Current Ratio

This ratio shows the assets that can be converted to cash to pay off debts incurred in one year. It roughly indicates if the borrower can cover short term liabilities. The cushion is greater when the ratio is higher.

Current ratio=total current assets/total current liabilities.

●       Quick Ratio

The quick ratio is also known as “Acid-test” ratio. It is calculated as:

Quick Ratio=Cash & Equivalents+Trade Receivables (net)/Total Current Liabilities

●     Sales/Receivables

This ratio measures the number of times the borrower’s trade receivables turn over in a year.

Sales/Receivables=Net Sales/Trade Receivables

●       Day’s Receivables

This ratio indicates the average number of days receivables outstanding.

Day’s receivables=365/(sales/receivables ratio)

Other key Ratios and Respective Formulas include:

Ratio Formula
Cost of sales to inventory ratio Cost of sales/inventory ratio
Day’s Inventory 365/(cost of sales/inventory ratio)
Cost of sales to payables ratio Cost of sales/payables
Day’s payables ratio 365/(cost of sales/payables ratio)
EBIT (Earning Before Interest Ratio) to interest ratio EBIT/Annual Interest Expense
Fixed/Worth Ratio Net Fixed Assets/Tangible Net Worth
Debt to Worth Ratio Total liabilities/tangible net worth
Profit before taxes to tangible net worth ratio (profit before taxes/tangible net worth)×100
Profit before taxes to total assets ratio (profit before taxes/total assets)×100
Sales to net fixed assets ratio Net sales/net fixed assets