The focus of this course will be the activities associated with Qualitative and Quantitative Analysis when underwriting evaluates a commercial lending request. This is an overview of the entire process for non-lenders.
- Describe macroeconomic factors that affect a business and its ability to repay a loan.
- Evaluate business, industry and management risk elements and their effect on loan repayment.
- Analyze key ratios including liquidity, leverage, asset management, profitability and coverage ratios.
- Evaluate sources and uses of cash on the financial statements.
- Understand the history of the cash flow statement and how it is used in credit analysis.
- Describe the difference between operating, investing and financing cash flows.
- Identify primary and secondary sources of repayment.
- Evaluate the risks associated with lines of credit, term loans, bridge loans and permanent working capital loans.
- Understand affirmative and negative covenants.
- Explain how underwriting integrates the analytical traditions of financial analysis, management assessment, and business environment into an appropriate credit recommendation.
- Outline the critical risks and how those risks are mitigated.
Who Should Attend?
Anyone who wants to understand how a commercial lending decision is made.
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