Understanding Business Borrowers (ABA)

Understanding Business Borrowers (ABA) – Course Code A6055SP

​Learn how to identify and understand business industries and types—and why they borrow money. An introduction to the basic concepts of business financial accounting and entity structures is also covered.

What You’ll Learn

The courses included in Understanding Business Borrowers and their objectives are listed below:

Business Sectors and Operating Cycle

  • Explain the operating cycles of various business industries
  • Analyze the financial data and evaluate the risks of the different industries

Why Businesses Borrow

  • Explain how a firm’s cash flow cycle can affect debt requirements and repayment sources
  • Identify the reasons businesses need to borrow
  • Identify the various borrowing arrangements used to structure a business loan
  • Describe the way alternative lending sources compete with or complement community banks

Business Legal Structures and Life Cycles

  • Define the basic types of legal structures available to a business
  • Describe the general characteristics of the four stages in the business life cycles

Introduction to Business Financial Statements

  • Describe the financial statement analysis process
  • Describe basic guidelines for preparing a spreadsheet and analyzing the data
  • Identify and evaluate a borrower’s financial strengths, weaknesses, and uncertainties
  • Explain the different types of financial statement preparation
  • Describe the other components associated with financial analysis

How Business Financial Statements are Constructed (Accounting Refresher)

  • Compare and contrast the cash method and accrual method of accounting
  • Construct a balance sheet and income statement on the accrual basis for an example business


Commercial and/or Business bankers and Credit Analysts

Course Credits

ABA Professional Certifications: 8.0 CLBB

ABA Certificates​: This course applies to the ABA Certificate in Business and Commercial Lending

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