Essentials of Commercial Credit Analysis Virtual Workshop
Register for our Virtual Essentials of Commercial Credit Analysis Workshop
Event Details
Essentials of Commercial Credit Analysis
Virtual Workshop | September 19 & 20, 2024
Essentials of Commercial Credit Analysis provides bankers with foundational principles for effective commercial loan underwriting and credit analysis. This two-day live, interactive, virtual workshop will equip bankers to analyze the “whole credit” and make evidence-based loan approval and structuring recommendations in today’s community banking environment, where bankers must have the skills and flexibility to respond to a wide range of loan requests.
The instructor’s facilitation approach encourages participant engagement and, thus, enhances their learning experience. Participants apply lending, underwriting, and credit analysis principles through class discussion, real-world examples, and case studies. Worksheets for calculating Debt-to- Income, Debt Service Coverage, and Global Debt Service Coverage are included.
Audience:
This series is targeted to Commercial Lenders, Small Business Lenders, Credit Analysts/Commercial Loan Underwriters, Loan Review Officers, and Management Trainees. This course is “down-to-earth” and particularly relevant for bankers who specialize in lending to small and mid-size commercial borrowers.
Benefits of the Series:
• Gain a solid foundation for a career in small business lending, commercial lending, credit analysis, or loan review.
• Become more aware of the pitfalls of common lending and credit analysis mistakes.
• Interpret and analyze financial information presented in business and personal tax returns.
• Understand why knowledge of UCA cash flow analysis is an under-valued, yet critical skill for all small business and commercial bankers.
• Learn how to interpret and communicate “the story” conveyed in the financial statements.
• Become familiar with analysis provided by commonly used bank financial analysis software.
• More effectively communicate with key stakeholders to improve loan decisioning and client service.
Attendees are required to:
• Attend and engage fully in training.
• Keep camera on during training.
• Bring a calculator to class.
• Bring printed copies of the training manuals and resource manuals to class.
For More Information:
Day 1: Introduction to Commercial Lending and Financial Accounting
The agenda includes:
- Commercial Lending in Today’s Community Bank
- Types of Borrowers/Legal Entities
- Defining the Borrowing Need and Sources of Repayment
- Analysis of the 5 C’s of Lending: Character, Capacity, Collateral, Capital, and Conditions
- Calculating Loan to Value, Loan to Cost, Debt to Income, and Debt Service Coverage
- Aligning Repayment Terms with Purpose, Cash Flow Timing, and Useful Life of Collateral
- Financial Accounting 101 for Lenders
- Types and Quality of Financial Statements
- Evaluating Guarantor Support and the PFS
Day 2: Analyzing Tax Returns, Calculating Global Cash Flow, and Financial Statement Analysis
The agenda includes:
- Calculating Debt to Income for Business Owners and Global Debt Service Coverage
- Analyzing Personal Tax Returns and Key Schedules
- Analyzing Business Tax Returns and Key Schedules
- When and Why to Request K-1’s versus Business Tax Returns
- Overview of Trend Analysis, Common Size Analysis, Ratio Analysis
- Intro to Working Capital Analysis and the Cash Conversion Cycle
- Intro to UCA Cash Flow Analysis
- Effective Credit Memos, Risk Rating, and Loan Recommendations