What a credit analyst does
Credit analysts decide, in practice, whether your organization gets paid back. They spread and analyze financial statements, study cash flow and collateral, consider industry and management risk, and write credit memos that recommend approval, decline or new terms. In commercial banking they support relationship managers and adjudicators on new deals, annual reviews and covenant monitoring. In trade credit, at manufacturers and distributors, they set customer credit limits and watch for accounts that are starting to slip.
Credit analysis is not a licensed profession in Ontario, so employers rely on training, judgment and track record. Many lenders value progress toward the CFA charter or the CPA designation, but the clearest signal is how a candidate reasons through a real file. A weak analyst approves risk that later becomes a loss, or turns away good business out of caution. Finch tests analytical thinking and writing directly, and confirms the type of borrowers each candidate has worked with.
Typical responsibilities
- Spread and analyze financial statements, tax returns and interim results from borrowers
- Calculate and interpret debt service coverage, leverage and liquidity measures
- Write credit memos with a clear recommendation, risk rating and proposed structure
- Monitor covenants, reporting requirements and early warning signs
- Complete annual reviews and renewals for existing borrowers
- Work with relationship managers, adjudicators and risk teams to structure new requests
Qualifications and credentials
- A degree in finance, accounting, economics or business is typical
- Formal credit training, either through a lender's program or coursework in credit analysis
- Progress toward the CFA charter or the CPA designation, valued by many lenders but not required
- Advanced Excel skills and experience with financial spreading tools
- Working knowledge of ASPE and IFRS statements and how accounting choices affect cash flow
- For trade credit roles, experience with credit applications, limits and collections
Who hires a credit analyst
- Commercial lending groups at banks
- Credit unions with business lending
- Equipment finance and leasing companies
- Private and alternative lenders
- Manufacturers and distributors with trade credit departments
Where we recruit credit analyst candidates
We fill credit analyst roles for employers across Toronto and the GTA, including North York, Scarborough, Etobicoke, Vaughan, Markham, Richmond Hill, Mississauga, Brampton, Oakville, Burlington, Oshawa and Pickering, and for employers across Canada. GTA employers can meet us at our North York office by appointment.
What Finch checks before you meet a candidate
- A credit case exercise or sample write-up, reviewed for logic, clarity and conclusions
- Depth of cash flow analysis, including how they treat one-time items and owner adjustments
- Industries and borrower types they have analyzed
- When and how they escalate concerns, discussed through real examples
- Eligibility to work in Canada, location and hybrid preferences
Interview questions to ask
- Revenue is growing but operating cash flow is falling. What do you look at first?
- How would you assess a borrower whose financial statements are prepared under a compilation engagement only?
- Tell me about a time you recommended declining or restructuring a request. How did you make the case?