Lending Decision Process
Course Overview
RMA’s Lending Decision Process offers a sound foundation in the basics of commercial lending and credit. Through web-based, audiovisual features, these 17 courses (or six separate series) present the analytical and decision-making techniques needed to make sound credit decisions using financial accounting, financial statement analysis, and cash flow analysis. They take between 35 and 50 hours to complete.
Duration
35 to 50 hours
Prerequisites
Assumes basic knowledge of financial accounting and credit analysis.*
Delivery
Self-Directed Online
Who Will Benefit?
The Lending Decision Process was designed as the foundation of a strong core credit curriculum for loan trainees, credit analysts, and anyone with commercial lending authority.
Program Level
Foundational
Pricing
Member: $720
Nonmember: $1,440
Courses
Series 1: Industry, Management, and Economic Influences
- Industry and Economic Influences
- Understanding the Business
Series 2: Interpreting Quality of Financial Reports and Accounts
- Interpreting Reliability and Comparability of Financial Statements
- Interpreting Quality and Consistency of Balance Sheet and Income Statement
Series 3: Analyzing the Company's Financial Performance and Condition
- Spreading Financial Statements
- Analyzing the Balance Sheet
- Analyzing the Income Statement
- Analyzing Combined Balance Sheets and Income Statements
Series 4: The Cash Cycle, Seasonality, and Discovering Borrowing Causes and Repayment Sources
- Business Cash Cycles
- Seasonality
- Discovering Borrowing Causes and Repayment Sources
Series 5: Analyzing Cash Flow Statements to Measure Long-term Repayment Ability
- Cash Flow Statements and Their Formats
- Analyzing Cash Flow
- Debt Service Coverage Measures
Series 6: Using Financial Projections to Fine Tune the Credit Analysis
- Assessing Short-term Repayment Ability Using Monthly Pro Formats
- Preparing and Interpreting Annual Financial Projections
- Using Projections to Help Determine Appropriate Loan Type
Methodology:
Each series in the curriculum details a step or steps in The Lending Decision Process. The series helps learners recognize how qualitative factors influence a company's ability to repay debt, to form an opinion about the accuracy and reliability of the financial statements, and then to perform analytical steps so they can assess a company's creditworthiness.