Format: Self Paced Online
Content Hours: 26 Hours
This certificate provides the core skills necessary to review and analyze small business lending requests. It gives participants the financial skills and confidence to ask appropriate questions to uncover financing needs. The result is an enhance more profitable customer relationship. 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.
Program intended for: Branch Managers, Assistant Branch Managers, Relationship Managers and Portfolio Managers
It takes between 14 to 16.5 hours to complete the entire on-line Small Business Lending program.
Students can proceed at their own pace to complete the course. Students have four months to complete the entire on-line Small business lending 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.
When you have finished this module, you should be able to:
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.
When you have finished this module, you should be able to:
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 statements.
Read and understand notes to financial statements.
Explain compilations, reviews, and audited statements.
When you have finished this module, you should be able to:
Explain the form 1040 and related schedules.
Explain the advantages and disadvantages of a sole proprietorships, C Corporations, S Corporations, Partnerships, Sole Proprietorships, and Limited liability entities.
Explain the advantages and disadvantages of holding and operating companies.
When you have finished this module, you should be able to:
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.
When you have finished this module, you should be able to:
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.
When you have finished this module, you should be able to:
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.
When you have finished this module, you should be able to:
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.
When you have finished this module, you should be able to:
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.
Short online videos (5 – 8 minutes each) that explain some of the fundamental concepts on commercial loan underwriting.
The topics of the videos are:
1. Liquidity
2. Accounts Receivable
3. Inventory
4. Adjusted or Net Working Capital
5. Cash Flow Coverage Analysis
6. Fixed Charge Coverage Analysis
7. Leverage
8. Balance Sheet Leverage
9. Cash Flow Leverage
The program 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.
The program is structured into 5 modules and it takes approximately 6 to 9 hours to complete.
Module 0: Cash Cycle and Financial Analysis Essentials
Module 1: Do Your Homework
Module 2: Effective Sales Conversations
Module 3: Discovering Cash Management and Financing Needs
Module 4: Value Added Solutions and Effective Closing
The program is practical in nature. A Manager’s Guide is provided where Managers are given tools to evaluate the skills participants have learned in a real world setting.
