Lending for Non-Lenders

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.

Who Should Attend?

Anyone who wants to understand how a commercial lending decision is made.