Constructing and analyzing financial projections to interpret future ability to repay debt, identify the most appropriate type of loan, and to evaluate margins of protection in the event of changes in business, industry or management risks.
Produced by the Risk Management AssociationLDP 6.1 – Assessing Short-Term Repayment Ability Using Monthly Pro FormasLDP 6.2 – Preparing and Interpreting Annual Financial ProjectionsLDP 6.3 – Using Projections to Help Determine Appropriate Loan Type
*Only available as a series
What You’ll LearnExplain the benefits of using financial projections in a credit analysisPrepare a pro forma monthly balance sheet to evaluate peak borrowing needs based on a company’s cash budget and projected monthly income statementsPrepare an annual financial projectionInterpret the ability to repay debt given assumptions about cash flow drivers and other variablesInterpret loan types based on projected borrowing needs and repayment sourcesDetermine an appropriate repayment schedule for long-term loans
After completing this series, students will be able to: