Commercial Credit for Lenders

A solid foundation in the basics of commercial lending and credit. 

Course Overview

Commercial Credit for Lenders has been designed to be the cornerstone of your bank's core credit curriculum. Using two new cases that run as threads throughout, this course teaches the analytical and decision-making techniques needed to make sound credit decisions using financial accounting, financial statement analysis, and cash flow analysis. 

The course focuses more on analysis of the credit content and less on pure number crunching. It gives participants a solid grounding in the technical and nontechnical concepts and practices associated with commercial lending and credit analysis. Participants learn about the lending decision process and the best practices for recognizing how qualitative factors influence a company's ability to repay debt. They will be able to form opinions about the accuracy and reliability of the financial statements and to perform all the analytical steps involved in assessing a company's credit risk. 

Who will benefit?

Commercial Credit for Lenders is for loan trainees, credit analysts, and anyone with commercial lending authority who needs to develop a sound process in which to consider credit risk. 

You will:

  • Interpret risks related to 1) industry, economic, market, and management factors; 2) the quality of financial reports and underlying financial accounts; and 3) historical financial performance and condition.
  • Apply balance sheet and income statement measures to analyzing liquidity, leverage, profitability, financial productivity, and efficiency.
  • Identify repayment risks related to a company's cash cycle and seasonal characteristics.
  • Construct and analyze financial projections and evaluate margins of protection.
  • Analyze cash flow statements and traditional debt service coverage measures to interpret cash flow repayment risks.
  • Be able to think critically and confidently about the benefits and challenges of a particular loan repayment.

Prerequisites

Commercial Credit for Lenders assumes that participants have completed RMA's Financial Accounting Self-Study course, a two-semester college course in accounting within the last five years, or possess the equivalent experience. 

A Pre- and Post-test are available upon request.

Commercial Credit for Lenders consists of two delivery options: 

  • Self-study
  • A combination of self-study and instructor-led.

How can you take this course?

We offer Commercial Credit for Lenders in two convenient formats:

  • In your facility, taught and administered by RMA.
  • Taught and administered directly by your organization using RMA course materials.

For more information and to order, please contact your Regional Manager.