How Loans Get Repaid: Cashflow, Collateral, and Personal Guarantees

Before approving any business loan request, a lender should be convinced of the applicant's ability to service debt through cash flow. If a business is not successful in generating enough cash flow to service debt, a lender may need to rely on either personal guarantees or the security pledged as collateral in order to be repaid. This program will explore these three means of getting repaid, as well as identify challenges lenders face in each scenario.

Covered Topics:

  • Cash Flow: What it is and how to measure it
  • Collateral Coverage
  • How to value collateral
  • Personal Financial Statements: What they tell us (and don't tell us) about a borrower
  • Personal Guarantees: When they're useful and how to leverage them

Who Should Attend?

  • Credit Analysts
  • Loan Officers
  • Branch Managers
  • Loan Committee members
"I've attended many of Vin's seminars over my last 20 years in lending and always find him to provide new perspective on an old way of looking at credit. Any opportunity I get to sign-up, I will." -- Tina V, First Dakota National Bank