Course Overview

Commercial Credit for Lenders is designed to teach participants the analytical and decision-making techniques they need to make sound credit decisions using financial accounting, financial statement analysis, and cash flow analysis. This course consists of a self-study component followed by an optional workshop designed to be facilitated by a person who is experienced in credit analysis.

     

Duration

35-50 hours

Delivery

Self-Study (Paper-Based)

Program Level

Foundational

 

Prerequisites

Participants should have a basic knowledge of financial accounting and some familiarity with financial statements.

 

 

Who Will Benefit?

Loan trainees, credit analysts, or anyone with commercial lending authority.

   

Learning Objectives

The course will help participants establish a foundation in the following areas of study:

• Business and industry risk analysis.
• Management assessment.
• Financial accounting.
• Balance sheet and income statement analyses.
• Ratio trend analysis.
• Cash cycle and seasonality analysis.
• Borrowing causes and repayment source assessment.
• Cash flow analysis and using financial projections.

Methodology:

Commercial Credit for Lenders actively involves the participants. They are engaged in learning through written exercises in each new self-paced lesson. Tests at the end of each self-study module help participants assess their level of understanding of the content before they move on to the next module. The Self-Study material includes two cases (with sample credit files) on two companies: Absorb-It, Inc. and ILS, Inc. Learners refer to the sample credit files as they study illustrations and analyze liquidity, leverage, profitability, and cash flow, just as they would refer to an actual credit file when analyzing a potential borrower. The Accounting and Financial Statements Refresher included with the self-study books includes a detailed review of financial accounting principles that participants must understand before they are ready to analyze financial statements. There is a pretest participants must take to assess their readiness for the self-study modules.