Credit vetting is the process of assessing customers’ applications for credit. These should be a systematic approach for deciding individual’s credit limit that treats all customers fairly. Variety of assessment method can be used, that seek to obtain or analysis information about the financial strength and credit worthiness of the customers.

When a bank lend money or supplier give credit to a customer, credit analysis is used to judge the risk involved and the likelihood that the borrowers or customers will pay what is owed on schedule. The purpose of the analysis is the same in each case to judge the liquidity of the company; this involves a study of the business, its markets and market position, its managements and its financial situation.
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