Commercial Lending Program

How sound is your commercial lending training program and how do you manage it? This unique training program will equip your lenders with the comprehensive credit skills they need to analyze a commercial lending request and prepare a highly effective credit write-up. The program emphasizes the competencies needed to identify, interpret, and analyze risk.

August 1, 2024
August 12, 2024
Presented by Tom Carlin
$1,850.00 or 8 Tokens

Includes: Live Access, 30 Days OnDemand Playback, Presenter Materials and Handouts

  • Commercial/Business Lending
  • Lending
  • Lending Compliance
  • Commercial Lender
  • Credit Analyst
  • Loan Closer
  • Loan Operations Manager/Specialist
  • Small Business Lender

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This program consists of ten online self-paced courses and two webinars. The webinars will cover real lending scenarios, and participants will enter virtual breakout rooms for interactive small-group discussions. Live attendance is a must to get the most out of this engaging training opportunity. Breakout rooms will not be recorded. Space is limited to 30 participants for a high-value learning experience, so register today!

Students will independently work through the first five courses and assessments prior to the first webinar, Commercial Lending Program - Part 1. Students will then work through the final five courses and assessments prior to the second webinar, Commercial Lending Program - Part 2.

Included Webinars

  • Commercial Lending Program - Part 1
  • Commercial Lending Program - Part 2

Series Details

Commercial Lending Program - Part 1

The participant will be introduced to the theory of financial accounting and the application of debits and credits and will be able to apply the accounting concepts to various situations.

Financial Statement Analysis
The ability to get behind the numbers when completing a financial statement analysis is critical to understanding the capacity of a borrower to repay. This course analyzes the income statement and balance sheet, focusing on trend an ratio analysis to evaluate performance. The conclusions provide a deeper understanding of the capacity to generate profits combined with an understanding of the overall financial position of the borrower.

Cash Flow Construction
This foundational course introduces cash flow construction concepts to understand how a business generates and uses cash. Three different cash flow constructions are presented: FASB 95, Uniform Credit Analysis (UCA), and EBITDA approach are explained, and a practical case is used to construct a UCA cash flow statement from a company’s financial information.

Cash Flow Analysis
This course introduces the cash flow analysis necessary to evaluate if a company has the capacity to service interest and principal payments, as well as to cover its capital expenditures. It explains the underlying causes of changes in cash flow within a company and interprets the meaning of some of the most widely used cash flow coverage ratios (Debt Service and Fixed Charge Coverage ratios).

Cash Flow Forecasting
The purpose of the course is to move forecasting from a number massaging exercise into the creation of a “Most Likely Case” scenario within a range of probable performance scenarios. The course builds the skills necessary to identify and assess the sources of repayment, identifies key credit risks and mitigating factors, and creates sensitivity forecasts that incorporate risk analysis.

Commercial Lending Program - Part 2

Sources of Repayment
This course focuses on the determination and evaluation of the strength of acceptable Primary Sources of Repayment (PSR) such as Net Cash Flow after Operations, Seasonal Conversion of A/R and Inventory, among others, by considering “scale” and “predictability.” It identifies and prioritizes the Secondary Sources of Repayment (SSR) by considering scale, predictability, liquidity, and interdependence of the PSR.

Guarantor Analysis
This course focuses on the analysis of a guarantor’s financial strength by assessing the capacity and willingness to make interest and principal payments. From the information provided in the tax return, you will calculate the guarantor’s combined business and personal cash flow to evaluate the sufficiency to support interest payments. From the Personal Financial Statement, you will calculate the Guarantor’s Net Worth and Liquidity.

Loan Structuring
The primary tenet of this course is the protection of the primary and secondary sources of repayment. An appropriate loan structure goes well beyond the loan type (Seasonal, Permanent Working Capital, Term and bridge Loans). It involves the integration of loan type, amortization schedules, covenants and collateral/guarantees which together create a “structure” that matches the appropriate loan type to the borrower’s needs, protects the primary source of repayment, and ensures value in the secondary sources when necessary.

Loan Documentation
As a lender, you must craft secure documents that protect your financial institution, especially in the event of non-payment. You will define the Legally Responsible Entities (such as Individuals and Sole Proprietors, Corporations, LLC and LLP, Partnerships and Trusts), identify the documents that establish the existence of an entity, provide authority, and establish the obligation to pay. The course develops a framework that safeguards your financial institution and explains the risks of inadequate documentation.

Credit Write-Up
Your ability to communicate a cohesive argument regarding the acceptability of a credit transaction is as important as the quality of the credit analysis itself. A credit write-up is key for analyzing, understanding, and communicating the credit worthiness of a business. This course develops a framework to develop a complete credit analysis to support the underwriting of a loan request by communicating a cohesive argument regarding the acceptability of a credit transaction in spite of the identified risks.

Program Preview

Who Should Attend

Credit administration staff, entry- and mid-level credit officers, entry-and mid-level commercial loan officers, loan review officers, retail bankers and relationship managers, commercial lending departments, and retail branch staff.

Tom Carlin

Instructor Bio

An authority on financial and credit risk, Mr. Carlin is a Managing Partner at Eensight. He has worked with major banks, insurance companies and regulatory agencies over the last twenty years, designing and teaching financial topics including: basic, intermediate and advanced credit and financial statement analysis, business lending for branch bankers, accounting for bankers, basic intermediate and advanced cash flow analysis, loan structuring, consumer lending and trade finance. His audiences include business bankers, recent graduates going through the organizations basic credit training program, senior management personnel who need to know the basics of accounting and financial statement analysis, middle market lenders with many years of experience and regulatory agency personnel. Each program he designs and teaches is tailored to the individual customer with the products, procedures and culture of the organization incorporated into the course design. The complexity and intensity of the programs are adjusted to reflect the needs of the participants and the logistical training issues faced by the organization.

He is the author of Financial Statement Analysis published by the American Bankers Association in 1994. He is also the author of Consumer Lending, published by The Center for Financial Training in 2015.

He has designed and taught programs in risk analysis for Citibank, Wells Fargo, American International Group, Capital One, Chase Manhattan Bank, First Tennessee, M & T, Union Bank, and The Bank of China. He has also taught the Credit Risk Analysis Program at the Federal Reserve Bank.

Prior to Eensight, Mr. Carlin was a Regional Director for Omega Performance Corporation. He was also a Vice President with Bankers Trust in New York. He was responsible for marketing credit and trade finance products to corporate clients and correspondent banks worldwide.

Mr. Carlin has a Master of International Management degree from Thunderbird School of Global Management and a Bachelor of Arts degree from Villanova University.