Evaluating and Structuring Commercial Loans: A Decision Tree Approach
This series provides the commercial lending process and the related financial analysis of a borrower. This involves a mix of qualitative and quantitative skills that cover over five “levels” with each level having four or five courses of instruction. To accelerate learning, each course has a pre-test to allow the elimination of subjects where the learner demonstrates sufficient knowledge. This curriculum also includes a comprehensive glossary of terms and job aids that are valuable references to download and print throughout the series of courses and back on the job. This curriculum focuses on commercial and industrial lending (C&I), and excludes commercial real estate or investment properties.
Sign up for the entire program or each level individually. Developed for Commercial and/or Business Bankers and Credit Analysts.
Level 1: Understanding Business Borrowers
• Business Sectors and Operating Cycles
• Why Business Borrow
• Business Legal Structures and Life Cycles
• Introduction to Business Financial Statements
• How Business Financial Statements are Constructed (Accounting Refresher)
Level 2: Analyzing Business Financial Statements and Tax Returns
• Income Statement Analysis
• Balance Sheet Analysis
• Ratio Analysis
• Cash Flow Analysis
• The UCA Model
• Cash Budgets and Pro Forma Statements
Level 3: Analyzing Personal Financial Statements and Tax Returns
• Types of Personal Financial Statements
• Key Ratios and Adjusted Net Worth
• Personal Tax Returns and Cash Flow
• Combining Business and Personal Cash Flow into Global Cash Flow
Level 4: Qualitative Analysis and Determining a Credit Risk Rating
• More Than Numbers: The Commercial Lending Process
• Loan Policies and Procedures
• Assessing Industry, Market and Management Risks
• Compiling a Risk Rating and Written Analysis
Level 5: Loan Structuring, Documentation, Pricing and Problem Loans
• Business Loan Structuring
• Identifying Viable Secondary and Tertiary Loan Repayment Sources
• Key Documents, Loan Agreements and Covenants
• Loan Pricing, Negotiating and Closing
• Problem Loan Basics