This program consists of eight 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. Breakout rooms will not be recorded. Space is limited to 30 participants for a high-value learning experience, so register today!
Students will independently work through the first four courses and assessments prior to the first webinar, Small Business Lending Program – Part 1. Students will then work through the final four courses and assessments prior to the second webinar, Small Business Lending Program – Part 2.
Small Business Lending Program – Part 1
September 11, 2024 | 1:30 pm – 4:00 pm CDT
Included Training Programs
Understanding Your Small Business Customer
This course will:
- Explain the characteristics of manufacturers, wholesalers, retailers, and service companies.
- Identify the advantages and disadvantages of firms in different stages of the industry life cycle, including emerging, growth, mature, and decline stages.
- Describe specific types of industry risk, including buyer/seller concentration, cyclicality, international, technology, and government regulation.
- Evaluate business risk factors, including operating leverage, competition, concentrations, distribution, products and services, and production.
- Discuss management success criteria such as experience, integrity, philosophy, and style.
- Evaluate the interrelationship between business, industry and management risk factors, as well as their impact on the credit decision-making process.
Accounting Basics
This course will:
- Describe the basics of financial reporting for financial statement and tax return purposes.
- Explain the basics of financial statement construction and how the income statement and balance sheet are linked through retained earnings.
- Describe how basic accounting concepts such as conservatism, revenue, and expense recognition policies affect financial statements.
- Explain the difference between cash and accrual statement.
- Read and understand notes to financial statements.
- Explain compilations, reviews, and audited statements.
Tax Returns and Legal Structure
This course will:
- Explain the form 1040 and related schedules.
- Explain the advantages and disadvantages of sole proprietorships, C Corporations, S Corporations, Partnerships, Sole Proprietorships, and Limited Liability entities.
- Explain the advantages and disadvantages of holding and operating companies.
The Balance Sheet
This course will:
- Describe the history and purpose of the balance sheet.
- Define, classify and interpret balance sheet accounts, including assets, liabilities, and net worth.
- Perform trend analysis on the major balance sheet accounts.
- Evaluate each asset’s liquidity and its availability for loan repayment.
- Identify the terms and conditions of liabilities.
- Calculate and analyze liquidity and leverage ratios.
Small Business Lending Program – Part 2
September 25, 2024 | 1:30 pm – 4:00 pm CDT
Included Training Programs
The Income Statement
This course will:
- Describe the importance of the income statement.
- Analyze revenues to determine if they are real and sustainable.
- Analyze the trend in expenses to determine if they are well controlled.
- Calculate and evaluate key profitability measures, including the gross profit margin, operating profit margin, and net profit margin.
- Explain the significance of EBITDA.
- Calculate profit to payment obligations by calculating debt coverage ratios.
Combining the Balance Sheet and Income Statement
This course will:
- Analyze the relationship between the balance sheet and income statement and explain key ratios that connect the two statements.
- Explain the concept of the cash cycle.
- Calculate and evaluate receivable turnover ratios.
- Calculate and evaluate inventory turnover ratios.
- Calculate and evaluate payable turnover ratios.
- Calculate the cash cycle and evaluate the results.
- Explain the concept of working capital.
- Calculate and evaluate the sales to working capital ratio.
Understanding Small Business Borrowing Needs
This course will:
- Explain how the operating cycle can vary from business to business.
- Match the needs of the customer to the appropriate loan product and explain the differences between seasonal and non-seasonal financing needs.
- Explain the concept of the capital investment cycle and determine the appropriate loan structure based upon the nature of the capital investment.
Personal Financial Statements
This course will:
- Describe the purpose of a personal financial statement.
- Explain why borrowers are asked to personally guarantee a loan.
- Explain the information one expects to find on a personal financial statement.
- Define a guarantor, his/her obligations, and the process to assess the strength of a guarantor.
- Explain a third-party guarantee and when one is needed.
- Explain how a guarantor is used in structuring a loan.
- Describe how personal financial statements are used to determine the guarantor’s ability to make interest and principal payments.
- Analyze personal financial statements to help determine sources of cash that can be used for loan repayment.
- Evaluate the borrower’s willingness to repay the loan.
Who Should Attend
Credit Analysts, Credit Officers, Small Business Relationship Managers, Small Business Lenders, Branch Managers, Loan Review Officers, and Portfolio Managers will all benefit from this webinar.