Asset-Based Lending for Non-Asset-Based Lenders

Site Location:
JPMorgan Chase & Co
201 St. Charles Ave, 28th Floor
New Orleans, LA  70170
JPMC Conference Room

Co-sponsored by the New Orleans Chapter

Date & Time: June 17, 2024 8:30AM - 5:00PM CT

Asset-Based Lending (ABL) for Non-Asset-Based Lenders is a case study course to provide generalist non-asset-based lenders with a basic understanding of this type of secured lending. Participants from banks with ABL units gain a cross-sell understanding of the product and those from banks with no ABL capability learn asset- based lending fundamentals to apply within their own portfolios. This course consists of the following aspects of asset-based lending: identifying candidates for asset-based loans; identifying and understanding credit and operational risks particular to asset-based loans; and understanding how appropriate loan structuring, reporting, and monitoring can minimize asset-based lending risk.

 To aid in the process of learning asset-based lending, participants study one case. The case actively involves participants by including large and small group activities and questions to enhance the understanding of asset-based lending. Participants learn by practice, which, in turn, increases retention.

OBJECTIVES
Upon completion of Asset-Based Lending for Non-Asset-Based Lenders, participants will be able to:

• Identify candidates for asset-based loans.
• Identify and understand credit and operational risks particular to asset-based loans.
• Understand the purpose and objectives of the field examination and be able to describe examination tests and how they help disclose and quantify collateral risk.
• Understand how appropriate loan structuring, reporting, and monitoring can minimize asset-based lending risk.

 Asset-Based Lending for Non-Asset-Based Lenders is designed for middle market lenders, credit analysts and relationship managers outside asset-based lending units. Analysts and lenders with moderate experience in generalist commercial lending can benefit from enhanced understanding of accounts receivable and inventory valuation issues, even if they do not have direct responsibility for asset-based loan origination or monitoring. Lenders in banks whose middle market units also must provide asset-based services can use this course as an inaugural training exercise. Relationship managers in banks whose non-asset based lenders are responsible for identifying prospective asset-based loan customers, whether new customers or existing customers with heightened risk profiles, can use this material to aid in the identification process.

Participants are expected to have some small business and middle market lending experience.