Course description
Comprehending a loan portfolio’s working, maintenance, and construction is an essential tool in any current world business with such a volatile financial business environment. Any successful business has managed to understand how loans work while effectively managing them. Such knowledge is essential to small businesses and larger institutional organizations that offer loans. To survive in the loan business, any business will have to establish a robust system to give an element of pre- and post-planning for loan issuance, risk assessment, and credit analysis.
Credit professionals, now more than ever, are needed to establish a robust risk management framework that has a clear and established way of understanding an organization’s credit with well-established financial modeling systems. The professionals will also have to understand macro and micro issues impacting the credit trends.
Upcoming start dates
Suitability - Who should attend?
Who should attend?
The Commercial Banking and Credit Analyst Certification Training Course by Rcademy is ideal for the following professionals:
- Credit analysts
- Branch managers
- Retail loan officers
- Risk manager
- Commercial loan broker
- Private equity analyst
- Corporate banker
- Business analysts
- Financial analyst
- Commercial loan officer
- Investment banker
Outcome / Qualification etc.
The Commercial Banking and Credit Analyst Certification Training Course by Rcademy has the objectives to enable participants to:
- Calculate a borrower risk rating using financial history
- Identify early warning signs of looming credit problems
- Understand and project cash flow cycles and a borrower’sworking capitalfunding gap
- Recommend collateral security structure to mitigate a lender’s loan loss risk
- Build a dynamic, well-structured, and logically designed 3-statement financial model
- Understand various loan covenants and recommend appropriate use
- Explore and use industry data providers for sourcing benchmarking information
- Complete a formal credit, following every step
- Explain how macroeconomic factors affect borrowers’ future capacity to service debt obligations
- Understand the process behind credit documentation and use specific examples of loan agreements and guarantees examples
- Recommend the right adjustments to credit structure based onindustry-specific risks
- Understand best practices and strategies used to assess a business’s management team
- Compare and contrast the various business structure and define the unique risks associated with lending each
Training Course Content
Module 1: Financial Analysis and Projections
- Business and industry analysis
- Loan funding techniques
- Development of a loan portfolio
- Balance sheet impact
- Asset management
- Marketing opportunities for loan portfolio development
Module 2: The 5 Cs in Credit
- Introduction to 5Cs
- Character – Overview of character – Assessing management character – Assessing the entire company’s character
- Collateral – Introduction to collateral – Quality of collateral – Case study
- Capacity – Cash flow statement analysis – Profitability and growth analysis – Assessing capacity
- Conditions – General business conditions overview – Assessing conditions – Analysing industry attractiveness – Competitive positions – Requirements and contract loan
- Capital – Assessing capital – Adequacy of working capital – Other sources of capital – Company main leverage
Module 3: Financial Statement Assessing
- Ratio and trends analysis
- Books of account
- Solvency ratios
- Adequacy of liquidity, control, and leverage position
- Cash flow analysis
- Spreadsheeting and analysis techniques
- Loss statements, balance sheets, and cash flow statement
Module 4: Cash Flow Analysis and Cycles
- Importance of cash flow
- Short-term vs long-term cash flow
- Cash flow cycles and analysis in Excel – Balance sheet – Financing activities – Operating activities – End-of-year cash flow equivalents – Investing activities – Operating cash flow cycle – Inventory – Accounts payable – Total working capital and operating working capital – Accounts receivables – Working capital cycles – Calculating payable, receivable, and inventory – Funding gap and operating line calculations
Module 5: Lending Officer and Credit Analyst Roles
- Stakeholders and their priorities
- How to Develop a loan handbook
- The role of credit analyst
- The credit analysis process
- Loan interview techniques
- Regulatory issues
- The credit analyst’s network and resources
Module 6: A 3-Statement Model Development
- Model preview
- Types of financial models
- Financial models definition
- Forecast working capital and PP&E – Receivable working capital equations – Payable working capital equations – Forecast PP&E – Inventory formula
- Review and audit – Change the assumptions to check the model – Check formula inconsistency – Model auditing tools in Excel – Auditing techniques – Pro precedents and auto-color sheet using mac abacus
- Forecasting revenues down to EBITDA – Forecasting revenues – Operating profits and revenue
- Model setup and assumptions
- Forecasting capital structure
Module 7: Risk Minimisation Using Credit Structuring
- Guarantor analysis
- Proper loan structuring recommendations
- Loan covenant considerations
- Analyzing collaterals
Module 8: Loan Pricing
- Introduction
- Revenue and profitability
- Debt vs equity
- Debt repayment profile
- Structure, pricing, and execution – Fixed vs floating rates – Committed vs uncommitted
- Client negotiations
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Rcademy
Rcademy is a global training and consultation organisation set out to bridge the gap between you now and what you can be in the near future. We are facilitators of knowledge impartation. Our team of established and experienced training enthusiasts...