CFT “NEW” Business Lending Certificate

The curriculum prepares mid-level bankers to serve effectively and profitably as commercial loan officers:

  • A better understanding of the economy and how it affects the lending decision;
  • An understanding of how a business is structured and how it completes;
  • An understanding of the role of a company’s management and how to analyze and evaluate that management;
  • A thorough understanding of basic and advanced analytical techniques;
  • An opportunity to apply these analytical techniques in a series of lending situations and to carry them forward in the structuring of the loans;
  • An understanding of relationship banking-how to meet multiple customer financial needs profitability;
  • A thorough understanding of how problem loans develop and the appropriate techniques to use in managing a problem loan;
  • An understanding of their bank’s tolerance for risk, the risk assumed in the loan portfolio and their bank’s credit process to manage the risks.

Required courses:

  • Relationship Banking/Business Development
    • Develop a prospecting and marketing culture
    • How to develop mutual beneficial relationships
    • How to sell banking products
    • Review the relationship selling model
    • Review the four types of calls
    • How to get past the gatekeeper and overcome objectives
  • Commercial Loan Products and Structuring
    •  Working Capital Lines of Credit
    • Term Loans, Equipment Loans & Owner Occupied
    • Trade Finance – Letter of Credit
    • How best to structure a commercial loan product
    • Identify a viable primary, secondary and tertiary source of repayment
    • Identify specific collateral for each loan product
  • Cash Flow Analysis
    • Adequately identify the borrower and the true source of cash
    • Understand Business Cash Flow, and how to utilize it from a re-payment point of view as well as a marketing opportunity.
    • How to establish the ideal size of a commercial line of credit.
    • Review the various cash flow methods, Traditional Cash Flow and the UCA method
    • Outline the benefits and limitations of UCA Cash Flow – Based Debt Service Coverage
    • Discuss EBITDA limitations
  • Industry Analysis
    • An in-depth analysis of the symbiotic relationship between the industry and the business risk
    • An in-depth review of cyclical and seasonal industries
    • Review the top four industries in South Florida
    • Review and understand Country Risk Analysis
  • Loan Agreement and Key Documents
    • Identify the primary, seasonality and tertiary source of repayments
    • Key commercial documents, Covenants, UCC Filings, Mortgage and more!