Financial institutions are today an integral part of the financing of many companies and sectors. Especially since many businesses are no longer generating the revenue of the past due to a broken economy. It is important for businesses to keep accurate and up-to-date financial records. (Lawrence, 1983) These records become an important part of the loan application package they submit to the lending institution. Financial institutions rely heavily on companies' audited financial statements to make lending decisions. (Jones, 1996) The process used in financial institutions is credit analysis. Credit analysis is the process used by lenders to decide whether a potential borrower should be approved for a loan. (Lawrence, 1983) The process also determines the loan amount. The purpose of the analysis is to determine the likelihood that a potential borrower will default on the loan and the severity of losses that could be incurred in the event of default. (DeYoung, Evans, Lam, & West, 2010) Essentially, the analysis process allows lenders to decide the creditworthiness of the company and guarantors. The summary of the process is to determine if the loan can be repaid. (Jones, 1996) The analysis function is carried out by the credit analyst. The analyst is responsible for performing a thorough credit review and assessing the risk/return ratio. (Guillaume, 2009). The review includes studying the loan proposal, assessing risk bearing capacity, analyzing financial statements, forecasting trends, studying the repayment file and a host of other tasks . The analyst is the lender and the potential borrower. (Williams, 2009)Incompletely Supplying Businesses...... middle of document......Works CitedBangs, David H., Jr. Managing by the Numbers: Financial Essentials for a Growing Business. Upstart Publishing, 1992. Clark, Scott. “You can read the tea leaves of financial ratios.” Birmingham Business Journal. February 25, 2000. DeYoung, Robert, Evans, Paul, Lam, Pok sang and West, Kenneth. Journal of Money Credit and Banking ranking: 2010: Business, Finance: 22/74; Economics: 88/304Gill, James O. Financial Foundations of Small Business Success. Crisp Publications, 1994. Jones, Allen N. “Financial Statements: When Read Properly, They Share a Wealth of Information.” » Memphis Business Journal. February 5, 1996. Lawrence C. Galitz, (1983) "Consumer Credit Analysis", Managerial Finance, Vol. 9 Iss: 3/4, pp.27 - 33Williams, Rachel. “Credit Analyst Jobs”. 2009. Retrieved March 21, 2012 from Isnare: http://www.isnare.com/html.phb?aid=414771