Are you ready to take your commercial lending expertise to the next level?
The Commercial Lending School delivers in-depth training in all facets of commercial credit, with an emphasis on financial analysis, cash flow versus profit, and loan structure. Cases emphasizing small and medium-sized companies are featured. Case studies are used, and active participation by the students is essential. The work will require study, documentation, analysis and decision making, often in small teams that will interact with the instructors. Pre-work may be assigned at the discretion of the instructor.
Audience: Credit Analyst, Branch Personnel who are breaking into small business lending and employees in the Commercial Lending department.
Date and Time Module 1 and 2: October 24, 2024 8:00am-5:00pm EST
Date and Time Module 3 and 4: October 25, 2024 8:00am-3:00pm EST
Location: DoubleTree by Hilton Bristol. 42 Century Drive, Bristol CT 06010
Registration is Per-Participant.
Details Below:
Module 1
Introductions
- Processing Loan Requests:
- Lender-Borrower Exchange
- The Whole Picture:
- External Environment
- Internal Environment:
- Bank Related
- Borrower Related
- Typical sequence between loan request and loan approval
- Collecting Borrower Information to process loan requests
- Bank’s Loan Documentation Checklist
- Borrower Mission, life cycle position, external influences
- Borrower Management and ownership
- Past Financial Performance: The Financial Statement and Tax Returns
- Borrower Financial Projections
- Underwriting Loan Requests: Measuring Repayment Risk via Financial Statement Analysis:
- 3 Components of F/S
- Historic Financial Trends
- Using Case Study, read an actual set of Financial Statements:
- Level of Preparation
- Balance Sheet
- Income Statement
- Statement of Cash Flows
- Notes to Financial Statements
- Review of Actual Financial Statements to be used in Case Study
- Finding and measuring the Five C’s of Credit from Business reputation and historic financial performance
Module 2
- Historical Financial Analysis/Processing Financial Statements
- Overview: Framing Picture of Borrower
- Determining Level of Information Required to Process a Loan Request
- Types of Business Financial Statements
- Financial Statement Components-The Detail
- Revisit Case Study Financial Statements
- Processing Financial Statements and Borrower Information
- Who is the Borrower?
- Financial performance relative to loan request
- Financial Statement Analysis
- Tools:
- Spreadsheet Construction
- Common Sizing Technique
- Statement of Cash Flow Worksheet
- Ratios
- Trend Analysis
- Comparative Analysis
- Forecasting
- Tools:
Module 3
- Financial Analysis Output
- Drawing an objective analysis from the tools for processing financial statements
- Cash Flow Analysis
- Direct vs Indirect Methodologies
- Ratio Analysis
- Five Ratio Classes used in financial analysis output
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- Debt Coverage methodologies
- Loan Structure vis a vis Repayment Sources
- Amazon Case-an illustration
- Homework: Read and be ready to discuss Case provided
- Mental Picture for assessing, underwriting and evaluating loan request in Case Study
- Historic Financial Performance vs. Management provided Financial Projections
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Module 4
Case Study Presentation
- Review Modules 2 & 3 highlights on processing financial information and financial analysis output around putting together an objective underwriting evaluation using case to review past financial performance
- Using Case’s Financial Statement Projections, discuss credibility in terms of past performance and run a Sensitivity Analysis to better measure repayment risk
- Develop appropriate loan structure that captures the Case Study Borrower request; articulate underwriting output; package this output for loan presentation/approval
- Building mitigants to repayment risk as part of loan structure
- Defining primary and back up sources of repayment
- Collateral
- Owner(s) Guaranty and what is required to evaluate and secure a loan guaranty(s)
Invest in your future and join us for this exceptional learning experience. We look forward to having you as part of our Commercial Lending School.
Related Topics
Instructor
George Connors
Mr. Connors is the President and Chief Credit Officer of Trustar Bank, located in Tysons Corner, Virginia, serving the greater Washington, D.C. area. He is a founding director of the Bank and has serv... read more.