Commercial Lending Underwriting Certificate

Commercial Lending Underwriting Certificate – Course Code E6090SP


Format:  Self Paced
Duration:  30 Hours

Material designed for:  Credit Analysts, Credit Officers, Commercial Loan Officers, Loan Review Officers, Relationship Managers, Branch Managers


This certificate provides bankers with the skills they need to underwrite commercial lending requests and explain their rationale in a succinct credit write-up.  Furthermore, it enhances bankers’ skills and competencies to acquire, expand and add value to their current and future business relationships by discovering cash management and financing opportunities. Bankers will improve their skills to plan and conduct sales calls with customers and prospects and offer value added solutions within a framework of effective sales conversations.

It takes approximately 20/30 hours to complete the entire on-line commercial credit training program.

There are video clips interspersed throughout the program that are used to reinforce key learning points. Students can proceed at their own pace to complete the program.


It takes approximately 20/30 hours to complete the entire on-line credit training program.

Students can proceed at their own pace to complete the course.  Students have twelve months to complete the entire on-line commercial credit training program. Listed below is a recommended course of study to complete the entire program within a three month time span. This allows enough time for vacation, personal or work related issues that can interrupt the course of study.
Modules can be studied more than one time, however, the assessments at the end of each course should only be taken when the student feels they have mastered the material.


Module 1: Accounting Basics

Understand the basic concepts in financial accounting.
Apply the accounting concepts to various situations


Module 2: Financial Statement Analysis

Apply consistent analytical process to financial statement evaluation
Understand how to use horizontal, vertical and ratio analysis.


Module 3: Cash Flow Construction

Understand how a business generates cash and how it is used.
Become familiar with the influences impacting a company’s ability to generate cash.
Explain the construction of the three different cash flow presentations, FASB 95 (the cash flow statement that is required in all audited financial statements), Uniform Credit Analysis (UCA), and the EBITDA approach (earnings before interest, taxes, depreciation and amortization), and for what purpose each is used.
Identify the benefits and shortfalls of the various cash flow presentations.
Construct a UCA cash flow statement from a company’s financial information.


Module 4: Cash Flow Analysis

Identify if a company has the capacity to service interest and principal payments, as well as to cover its capital expenditures.
Explain the underlying causes of changes in cash flow within a company.
Interpret the meaning of some of the most widely used cash flow coverage ratios.


Module 5: Cash Flow Forecasting

Understand the purposes of different types of forecast scenarios.
Integrate credit risk analysis into scenario development.
Identify primary and secondary sources of repayment of the forecast.


Module 6: Sources of Repayment

Identify the Primary Sources of Repayment (“PSR”) from which a financial institution expects to be repaid.
Calculate the Primary Source Breakeven.
Evaluate the strength of the PSR considering its “scale” and “predictability”.
Identify and prioritize the Secondary Sources of Repayment (“SSR”)
Evaluate the SSR strength by considering scale, predictability and interdependence of the PSR.


Module 7: Guarantor Analysis

Define a guarantor, his/her obligations and the process to assess the strength of a guarantor.
Calculate the guarantor’s combined business and personal cash flow from the information provided in the tax return.
Evaluate the sufficiency of the guarantor’s combined business and personal cash flow to support the interest payments of the loan.
Construct the Guarantor´s Global Cash Flow and calculate the debt coverage ratio.
Analyze the Guarantor´s Net Worth to determine if it is sufficient to cover the entire principal amount on the loan.


Module 8: Loan Documentation

Understand the various types of loans and their purpose.
Match the appropriate loan type to the borrower’s need.
Develop a structure that will protect the sources of repayment and match anticipated events.


Module 9: Loan Structuring

Define the Legally Responsible Entities.
Identify the documents that:

establish the existence of an entity,
provide authority to act,
establish the obligation to pay,
establish security.

Explain the risks to a financial institution of inadequate documentation.

Module 10: Credit Write-up

Explain the process of communicating a complete credit analysis supporting the underwriting of a loan request.
Communicate a cohesive argument regarding the acceptability of a credit transaction in spite of the identified risks.


There is a 10 question assessment at the end of each module students must achieve an 80% score to pass.

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