How to Write and Present a Credit Paper in English

A credit paper must work for someone who was not in the client meeting. The English therefore needs to be concise, evidence-based and decision-oriented. Different banks may call the document a credit paper, credit submission, credit application or credit memo.

Put the request and recommendation first

Do not make the reader wait until the end to discover what is being requested.

• “We recommend approval of a $15 million revolving credit facility for a three-year tenor.”
• “The request is to increase the existing facility from $10 million to $14 million.”
• “We recommend renewal on existing terms, subject to the conditions set out below.”

Explain the borrower briefly

The purpose is not to reproduce the company website. Give information relevant to the credit decision.

• “ABC Group is a regional distributor of industrial equipment with operations in Singapore and Malaysia.”
• “The bank has maintained a relationship with the group since 2018.”
• “The company generates approximately 70% of revenue from recurring service contracts.”

State the purpose of the financing

• “The facility will fund seasonal working-capital requirements.”
• “The term loan will finance the acquisition of a new production site.”
• “The increase is required to support higher receivables following recent growth.”

Turn financial data into analysis

A credit paper should not merely repeat a table of accounts. Explain what the figures show.

• “Revenue grew by 12%, although EBITDA margins weakened because input costs increased.”
• “Cash conversion remained strong, allowing net debt to decline.”
• “Working capital increased materially, driven mainly by slower customer collections.”

Explain repayment capacity

• “Debt service is expected to be met from operating cash flow.”
• “The base case shows adequate capacity to service the proposed debt.”
• “The downside case indicates tighter coverage but remains within the agreed threshold.”

Pair each risk with a mitigant

This makes the paper easier for an approver to test.

• “Risk: high customer concentration. Mitigant: long-term contracts and a strong retention history.”
• “Risk: elevated leverage following the acquisition. Mitigant: strong cash generation and limited near-term maturities.”
• “Risk: cyclical end market. Mitigant: flexible cost base and diversified geography.”

Write conditions as actions

• “Maintain net debt to EBITDA below the agreed threshold.”
• “Provide quarterly management accounts within 45 days of quarter-end.”
• “Obtain credit approval before any material increase in acquisition debt.”

The exact legal wording belongs in the relevant documentation. In a credit paper, the communication goal is to make the condition clear and connected to the risk it addresses.

Use short, analytical sentences

Credit writing becomes difficult to read when every sentence contains several qualifications. Prefer one main idea per sentence.

• Long: “Although revenue increased during the year and the company continued to win new customers, profitability was negatively affected by higher logistics costs which management expects to reduce over the coming quarters.”
• Clearer: “Revenue increased during the year as the company won new customers. Profitability nevertheless weakened because logistics costs rose. Management expects some of this pressure to ease over the next two quarters.”

A concise opening paragraph

“We recommend approval of a $12 million three-year revolving credit facility for ABC Manufacturing to support seasonal working-capital requirements. The recommendation is supported by stable cash generation, low leverage and a long-standing banking relationship. The main risks are customer concentration and margin pressure, which are partly mitigated by contracted revenue and a flexible cost base.”

Final check before submission

• Can the reader identify the request in the first paragraph?
• Does each important number include a useful comparison?
• Are the main risks prioritised rather than simply listed?
• Does each mitigant genuinely reduce the stated risk?
• Is the recommendation consistent with the analysis?

Good credit English is not about sounding elaborate. It is about helping the decision-maker see the request, the evidence, the risks and the recommendation quickly.