Cash Flow Analysis and Borrowing Causes
4.63
512 Reviews
In this 3rd course of the Commercial & Industrial Business Underwriting Skill Series, participants will manually construct a UCA cash flow statement to identify borrowing causes, debt service cash sources, related party transaction impacts, financing requirements, and implications for future cash flow and debt service issues.
Certificate
1 credit or $295
Cost
1.5 - 2 Hrs.
Duration
1 hr.
Prep Time
1
Quiz
Overview
In the third webinar session, participants review and identify the financial documents and information necessary to manually construct a UCA cash flow statement. They engage in the actual manual construction of a UCA cash flow statement and use the resulting statement to identify the borrowing causes, the source of cash to service interest-bearing debt, the cash impact of related party transactions, the financing requirement, and the sources of cash to satisfy the financing requirement. In addition they identify the implications for future cash flow problems and likely debt service difficulties, if any, from messages that emerge from the construction and review of the UCA cash flow statement.
Who Should Take This Course
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
Some familiarity with an accrual income statement and balance sheet for a commercial business, as well as completion of prior sessions in the Credit College.
Objectives
By the end of the webinar session, participants will be able to:
- Review the construction and use of traditional "cash flow" - net income plus depreciation - and determine whether traditional "cash flow" identifies borrowing causes, cash repayment sources, possible repayment risks, and the financing requirement or surplus;
- Review the construction and use of an abbreviated UCA cash flow statement and determine whether it identifies borrowing causes, cash repayment sources, possible repayment risks, and the financing requirement or surplus;
- Review the construction and use of a full and comprehensive UCA cash flow statement and determine whether it identifies borrowing causes, cash repayment sources, possible repayment risks, and the financing requirement or surplus;
- Examine the full UCA cash flow statement to identify the dollar amount of outside cash required to run Total Coverage, Inc.;
- Examine the full UCA cash flow statement to identify the sources of cash to service interest-bearing debt as well as to meet the financing requirement; and
- Examine the full UCA cash flow statement to determine if the borrower satisfied the second necessary condition for business success.
Materials(access provided with registration)
- Exercise 3
- Credit Refresher on The ABCs of Cash Flow
- Financial Statements for Total Coverage Inc.
- Presentation Slides
- Presentation Polls
- Webinar Poll Solutions
- Exercise Solutions
This is Course 3 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
