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
Audience
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