Course description
Commercial lending refers to the relationship created when an institution such as a bank, finance firm, credit union, or corporation lends credit to a different corporate or business entity with a predetermined interest rate. Lending is a crucial part of any financial institution that deals with credit, and lending money to commercial clients is a major part of the economy. It provides a great source of profits to corporate lending while at the same time giving those who are borrowing a chance to grow. It is, therefore, important to understand how to do it properly.
How does commercial lending work?
Commercial lending is providing loans to businesses for various purposes, includingworking capital, investment in equipment or real estate, or financing for growth or expansion. Here is how commercial lending works:
- Borrower identification and qualification
- Loan application
- Loan underwriting
- Loan approval
- Loan disbursement
- Loan repayment
Upcoming start dates
Suitability - Who should attend?
Who should attend?
The Commercial Lending Training Course from Rcademy is ideal for the following professionals:
- Commercial and corporate lenders
- Branch managers
- Commercial credit officers
- Middle-market client-facing staff
- Relationship manager
- Corporate loan analysts
- Treasury managers
- Underwriters
Outcome / Qualification etc.
The Commercial Lending Training Course from Rcademy has a goal of enabling participants:
- Define commercial lending
- Understand in-depthloan borrowing analysisand projecting performances to determine cash flow quality, sustainability and accuracy
- Recognize the types, processes, and procedures for bankers to acquire different information types during business development
- Discuss conventional commercial lending versus SBA lending
- Discover various ways to integrate qualitative and quantitative information to develop test hypotheses about the risk factors that most lenders face
- Apply the learned knowledge to evaluate the risks related to the borrowing scenario in businesses and how they affect their overall performance
- Identify the sources of repayment and determine how appropriate they are for various commercial loan borrowing
- Understand fully the underwriting process for a commercial loan, including financial statement analysis
- Understand how to develop loan structure,loan documentationand proper loan pricing
- Identify the causes of problem loans and steps to resolving them
- Develop the necessary skills for credit assessment and investigations
- Review and understand the process of negotiating commercial loans, the sources of commercial loans, and the legal requirements in any commercial loaning process
- Apply the skills learned to make better loan procedures and policies
- Understand loan covenants and agreements
- Identify and describe the seasonal borrowing need repayment sources, profile seasonal repayments and understand their risks
- Identify and explain the loan negotiation process
- Explain the main objective and purpose of loan covenants and identify specific examples of covenants that meet those objectives
Training Course Content
Module 1: Credit Risk Analysis and Measurement
- Credit risk and loan handling
- Probability of default
- Risk assessmentand analysis
- Qualitative Factors in loans assessment
- Quantitative Factors in loans assessment
- Risk rating
- Loan interest rates
Module 2: Securities for lending
- Realizing security
- Real estate properties
- The importance of security
- Limited company security
- Valuation of security
- Guarantees
- Different types of charge
- Personal security
- What makes good security?
- Legal case study
Module 3: Analysing the Cash Flow
- Introduction to cash analysis
- Historical movements and the effects on cash
- Overtrading
- Amortization
- Working capital
- Cash flow available for debt servicing
- The use of earnings before interest
- Cash flow projections
- Tax
- Cash flow value depreciation
Module 4: The Lending Products
- Introduction to lending products
- Asset-based lenders
- Where else can businesses draw funding from
- Lending products
- International trade finance
- What happens when banks say no?
- Case study questions
Module 5: Issues Facing Businesses
- Introduction to financial difficulties
- How do businesses get themselves into financial difficulties?
- Dealing with insolvency
- The banker is a shadow director
- What are the options and choices facing the lending banker, and how does it protect itself?
- Insolvency process
- What are the routes a business might take to remedy challenges?
- Case study
Module 6: Business Strategic Analysis
- Introduction to business analysis
- What is a strategy?
- The different sectors of business that exist
- Tools and methods used to make a strategy
- Business stakeholders
Module 7: Maintaining The Relationship
- Small and medium-sized enterprises definitions
- The banker and customer relationship
- Mid-sized enterprises
- Learning different techniques to maintain a good relationship
- The legal categorization of business customers
- Assessing business management
- Entrepreneurs
- What is management?
- Business management
- Business sectors and operating cycles
Module 8: Financial Statement Analysis
- Balance sheet analysis
- The UCA model
- Ratio analysis
- Pro forma statement
- How business financial statements are constructed
- Income statement analysis
- Personal tax returns and cash flow
- Types of personal financial statements
- Key ratio and adjusted net worth
- Loan policies, procedures, andcredit risk ratings
- The commercial lending process and the initial business development process
- Assessing non-financial risks
Module 9: Loan Structuring and Documentation
- Problem loans
- Ideniable secondary and tertiary sources of repayment
- Loan pricing and negotiations
- Commercial loan structuring
- Key documents, covenants and loan agreements
- Treasury management
- Business legal structures and life cycles
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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...