Lending for Non-Lenders
Course Number: Webinar
Course Code: n/a
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.
Covered Topics
-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.
Audience: Anyone who wants to understand how a commercial lending decision is made.
Prerequisites: n/a
