This two-day program provides its participants with the knowledge and skills that are necessary to make good lending decisions in response to commercial loan requests. Students will learn a variety of techniques that use financial statements, tax returns, and other financial information to determine the strengths and weaknesses of loan applicants. In addition, this program will also demonstrate how to structure loans that use multiple funding options, consisting of both public and private financing sources. At the conclusion of this program, participants will be able to understand financial information in order to better analyze loan requests from commercial loan borrowers.
1. The Commercial Lending Process
2. Credit Analysis - What is it?
3. Balance Sheet Overview
- Current Assets
- Current Liabilities
- Working Capital and Operating Cycles
- Long Term Assets
- Long Term Liabilities
- Net Worth
4. The Profit and Loss Statement
- Cost of Goods Sold
- Sales, General, and Administrative Expenses
- Components of Cash Flow
- The Role of Depreciation
5. Repaying Loans: Cashflow, Collateral and Personal Guarantees
Case Studies will be used to reinforce learning!