This program consists of ten online self-paced courses and two webinars. The webinars will cover real lending scenarios, and participants will enter virtual breakout rooms for interactive small-group discussions. Live attendance is a must to get the most out of this engaging training opportunity. Space is limited to 30 participants for a high-value learning experience, so register today!
Students will independently work through the first five courses and assessments prior to the first webinar, Commercial Lending Program – Part 1. Students will then work through the final five courses and assessments prior to the second webinar, Commercial Lending Program – Part 2.
Commercial Lending Program – Part 1
January 29, 2024 | 1:30 pm – 4:00 pm CST
The participant will be introduced to the theory of financial accounting and the application of debits and credits and will be able to apply the accounting concepts to various situations.
Financial Statement Analysis
The ability to get behind the numbers when completing a financial statement analysis is critical to understanding the capacity of a borrower to repay. This course analyzes the income statement and balance sheet, focusing on trend an ratio analysis to evaluate performance. The conclusions provide a deeper understanding of the capacity to generate profits combined with an understanding of the overall financial position of the borrower.
Cash Flow Construction
This foundational course introduces cash flow construction concepts to understand how a business generates and uses cash. Three different cash flow constructions are presented: FASB 95, Uniform Credit Analysis (UCA), and EBITDA approach are explained, and a practical case is used to construct a UCA cash flow statement from a company’s financial information.
Cash Flow Analysis
This course introduces the cash flow analysis necessary to evaluate if a company has the capacity to service interest and principal payments, as well as to cover its capital expenditures. It explains the underlying causes of changes in cash flow within a company and interprets the meaning of some of the most widely used cash flow coverage ratios (Debt Service and Fixed Charge Coverage ratios).
Cash Flow Forecasting
The purpose of the course is to move forecasting from a number massaging exercise into the creation of a “Most Likely Case” scenario within a range of probable performance scenarios. The course builds the skills necessary to identify and assess the sources of repayment, identifies key credit risks and mitigating factors, and creates sensitivity forecasts that incorporate risk analysis.
Commercial Lending Program – Part 2
February 12, 2024 | 1:30 pm – 4:00 pm CST
Sources of Repayment
This course focuses on the determination and evaluation of the strength of acceptable Primary Sources of Repayment (PSR) such as Net Cash Flow after Operations, Seasonal Conversion of A/R and Inventory, among others, by considering “scale” and “predictability.” It identifies and prioritizes the Secondary Sources of Repayment (SSR) by considering scale, predictability, liquidity, and interdependence of the PSR.
This course focuses on the analysis of a guarantor’s financial strength by assessing the capacity and willingness to make interest and principal payments. From the information provided in the tax return, you will calculate the guarantor’s combined business and personal cash flow to evaluate the sufficiency to support interest payments. From the Personal Financial Statement, you will calculate the Guarantor’s Net Worth and Liquidity.
The primary tenet of this course is the protection of the primary and secondary sources of repayment. An appropriate loan structure goes well beyond the loan type (Seasonal, Permanent Working Capital, Term and bridge Loans). It involves the integration of loan type, amortization schedules, covenants and collateral/guarantees which together create a “structure” that matches the appropriate loan type to the borrower’s needs, protects the primary source of repayment, and ensures value in the secondary sources when necessary.
As a lender, you must craft secure documents that protect your financial institution, especially in the event of non-payment. You will define the Legally Responsible Entities (such as Individuals and Sole Proprietors, Corporations, LLC and LLP, Partnerships and Trusts), identify the documents that establish the existence of an entity, provide authority, and establish the obligation to pay. The course develops a framework that safeguards your financial institution and explains the risks of inadequate documentation.
Your ability to communicate a cohesive argument regarding the acceptability of a credit transaction is as important as the quality of the credit analysis itself. A credit write-up is key for analyzing, understanding, and communicating the credit worthiness of a business. This course develops a framework to develop a complete credit analysis to support the underwriting of a loan request by communicating a cohesive argument regarding the acceptability of a credit transaction in spite of the identified risks.
Who Should Attend
Credit administration staff, entry- and mid-level credit officers, entry-and mid-level commercial loan officers, loan review officers, retail bankers and relationship managers, commercial lending departments, and retail branch staff.