ABOUT

The Commercial Lending School delivers in-depth training in all facets of commercial credit, with an emphasis on financial analysis, cash flow versus profit, and loan structure. Cases emphasizing small and medium-sized companies are featured. Case studies are used, and active participation by the students is essential. Pre-work may be assigned at the discretion of the instructor.

Details Below:

Module 1 

Introductions

  • External Environment:
    • Economy,
    • Industry Trends,
    • Market Forces
  • Life Cycles of Businesses
  • Internal Environment:
    • Banking Climate, Bank Size and Lending Culture
    • Regulatory Environment
    • Borrower Funding Need
    • Borrower make-up in terms of ownership, management and legal structure and historic financial performance
  • Processing Loan Requests:
    • Lender-Borrower Exchange
    • Typical sequence between loan request and loan approval
    • Collecting Borrower Information to process loan requests
      • Bank’s Loan Documentation Checklist
      • Borrower Mission, life cycle position, external influences
      • Borrower Management and ownership
      • Past Financial Performance: The Financial Statement and Tax Returns
      • Borrower Financial Projections
    • Underwriting Loan Requests: Measuring Repayment Risk via Financial Statement Analysis:
      • 3 Components of F/S
      • Historic Financial Trends
      • Reading Financial Statements:
        • Level of Preparation
        • Balance Sheet
        • Income Statement
        • Statement of Cash Flows
        • Notes to Financial Statements
      • Review of Actual Financial Statements to be used in Case Study
    • Finding and measuring the Five C’s of Credit from Business reputation and historic financial performance

Module 2

  • Historical Financial Analysis Overview
  • Framing Picture of Borrower
  • Determining Appropriate Level of Information Required to Process a Loan Request
    • Types of Business Financial Statements
  • Financial Statement Components-The Detail
    • Revisit it Case Study Financial Statements
  • Processing Financial Statements and Borrower Information
    • Who is Borrower
    • Financial performance relative to loan request
    • Financial Statement Analysis
      • Tools:
        • Spreadsheet Construction
        • Common Sizing Technique
        • Statement of Cash Flow Worksheet
        • Ratios
        • Trend Analysis
        • Comparative Analysis
        • Forecasting

Module 3

  • Financial Analysis Output
    • Drawing an objective analysis from the tools for processing financial statements
    • Cash Flow Analysis
      • Direct vs Indirect Methodologies
      • Ratio Analysis
        • Five Ratio Classes used in financial analysis output
      • Debt Coverage methodologies
    • Loan Structure vis a vis Repayment Sources
    • Amazon Case-an illustration
    • Homework: Read and be ready to discuss Case provided
      • Mental Picture for assessing, underwriting and evaluating loan request in case study

Module 4

  • Review Modules 2 & 3 highlights on processing financial information and financial analysis output around putting together an objective underwriting evaluation using case to review past financial performance
  • Financial Statement Projections
    • Medical Imaging Financial Projections
  • Developing appropriate loan structure that captures both the Borrower request and underwriting output, and packaging this output for loan presentation/approval using the case provided
  • Building mitigants to repayment risk as part of loan structure
    • Defining primary and back up sources of repayment
    • Collateral
    • Owner(s) Guaranty and what is required to evaluate and secure a loan guaranty
Register here:  https://cftnow.org/courses/commercial-lending-school/
For more information, contact Crista@CFTeducation.org