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 Renee@CFTeducation.org