Course Overview

RMA Lending Academy II is designed to help financial advisors develop a comprehensive framework to analyze businesses and structure financial solutions while creating value-added services through a relationship planning and financial advisory orientation to client management. Participants will learn the analytical process and decision-making techniques needed to make sound credit decisions through the application of financial accounting, financial statement analysis, cash flow analysis, and transaction structuring.

     

Duration

20 hours

Delivery

Instructor-Led Online

Program Level

Foundational

 

Prerequisites

Participants should have completed RMA's Lending Academy I, and also have a basic knowledge of financial accounting and some familiarity with financial statements.

 

 

Who Will Benefit?

Credit risk professionals who are new to banking or commercial lending including new hires, branch managers, business development officers, and relationship officers who are required to read financial statements and tax returns.

   

Learning Objectives

Upon completion of this course, participants will be able to:

• Perform credit risk analysis to help clients achieve business objectives while at the same time ensuring repayment of debt.
• Create capital structures that meet the rate of return criteria for all capital providers.
• Identify the sources of debt and equity available to commercial clients.
• Establish a foundation in the following areas of study:
  • Business and industry risk analysis
  • Management analysis
  • Financial statement analysis
  • Cash flow analysis
  • Cash flow drivers
  • Debt service capacity
  • Forecasting
  • Transaction structuring

Methodology:

RMA Lending Academy II is based on three cases: a pickle manufacturer, a snowboard manufacturer, and a distributor of contact lenses. At a minimum, participants will be required to read the cases and develop a viewpoint based on a set of guiding questions prior to the program. Additional cases may be introduced to allow participants the opportunity to practice the credit skills they learn. In addition to creating a framework for analyzing credits, the participants will learn the specifics of transaction structuring: seasonal financing, permanent working capital, term debt, subordinated debt, and equity. Covenants, collateral, and terms and conditions of lending will also be covered.