Analytical Decision Tree and the Credit Write-Up
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In this 1st course of the Commercial & Industrial Business Underwriting Skill Series, participants will identify four essential credit write-up issues, explore credit decision steps, examine financial statements, assess borrower interview comments, and identify key personal traits and competitive advantages for business success.
Certificate
1 credit or $295
Cost
1.5 - 2 Hrs.
Duration
1 hr.
Prep Time
1
Quiz
Overview
In the first webinar session, participants identify the four essential issues that must be addressed in every credit write-up and explore the sequential analytical steps in the credit decision process. They examine the financial statements for a prospective borrower, assess interview comments by a second prospective borrower, explore the personal characteristics necessary for business success, and identify the generic sources of competitive advantage for a business.
Who Should Attend
This Course is ideal for participants currently in or aspiring to enter the following job functions:
- Credit Management
- Commercial Credit Administration
- Commercial Loan Portfolio Management
- C & I Lending
- Special Assets
- Credit Analysis
- Loan Review
Prerequisites
Familiarity with accrual financial statements and accrual financial statement terminology.
Objectives
By the end of the webinar session, participants will be able to:
- State and explain the four essential analytical issues that must be addressed in every credit write-up, regardless of borrower, business organization, industry, or proposed credit facilities.
- State and explain the sequential analytical steps that assure each of the four essential issues are addressed in the analytical process leading to a credit decision.
- Identify areas of concern that may emerge from examination of a set of financial statements for a real estate developer and determine the apparent severity of the risk issues and their implications for company management.
- Identify areas of personal and business concern that emerge from an audio interview with the CEO of a flooring design and installation company and determine the apparent severity of the risk issues.
- State the generic sources of competitive advantage and identify the specific sources of competitive advantage, if any, for the flooring business.
- Assess the personal qualities, competitive advantages, and apparent financial risk issues in establishing an initial acceptable or unacceptable risk profile for a borrower or prospective borrow.
Materials(access provided with registration)
- Credit Refresher on The Credit Write-Up
- "The Junkyard Dog" and "Strategy" from Shockproof! 6 Essentials for Business Success in Good and Bad Times
- Financial Statements for Sequoia Properties
- Transcript of Initial Interview with Larry Crevin
- Exercise for the Session 1 Webinar
- Webinar Presentation Slides
- Webinar Poll Questions
- Webinar Poll Solutions
- Exercise Solutions
This is Course 1 of 8 in the Commercial & Industrial Business Underwriting Skill Series
Analytical Decision Tree and the Credit Write-Up
Financial Statement Review and Ratio Analysis
Cash Flow Analysis and Borrowing Causes
Projected Cash Flow, Management Assessment and the First Way Out
Guarantor Analysis and the Second Way Out
Non-Financial Red Flags and Performance Implications
Identifying and Mitigating Repayment Risks
The Credit Write-Up Again
