Non-Financial Red Flags and the Second Necessary Condition
4.65
520 Reviews
In this 5th and final course of the Introduction to Commercial Credit Skill Series, participants will examine traditional cash flow use and limitations in a case study, explore UCA cash flow for debt service, review a business success condition, and identify non-financial red flags affecting borrower performance.
Certificate
1 credit or $295
Cost
1.5 - 2 Hrs.
Duration
1 hr.
Prep Time
1
Quiz
Overview
In the fourth and final webinar session, participants examine the use and limitations of traditional "cash flow" and explore a truncated version of the Uniform Credit Analysis (UCA) cash flow statement in identifying the source of cash to meet debt service. Further, they review the second of two necessary conditions for business success following examination of the cash flow snapshot format. Finally, participants examine an extensive list of possible non-financial red flags and identify their likely impact on company performance in the process of assessing whether to pursue a business relationship with Total Coverage, Inc.
Who Should Attend
This Course is ideal for participants currently in or aspiring to enter the following job functions:
- Commercial Credit Administration
- Commercial Loan Administration
- C & I Lending
- Corporate Lending
- Private Banking
- Loan Review
- Special Assets
- Internal Audit
- Health Care Provider Lending
- Specialized Lending
- Credit Analysis
Prerequisites
Some familiarity with an accrual income statement and balance sheet for a commercial business, as well as completion of Sessions 1, 2, and 3.
Objectives
By the end of the webinar session, participants will be able to:
- Identify the benefits and limitations in using tradtional "cash flow" - net income plus non-cash charges - in assessing a company's ability to meet its interest-bearing debt service from business cash flow.
- Construct an operating cash flow statement from income statement and balance sheet information and explain the rationale for doing so.
- Identify the similarities and differences in messages provided by traditional "cash flow" and the UCA cash flow statement about a company's ability to service its interest-bearing debt from business cash flow.
- Identify the reasons for fundamental differences between traditional "cash flow" and UCA cash flow and the role each plays in determining if a company meets the second necessary condition for business success.
- Identify non-financial red flags that apply to Total Coverage, Inc. and trace their likely impact on the company's performance, should they emerge.
- Assess the importance of an array of soft and hard data considerations and analysis in shaping the decision to further pursue a business relationship with Total Coverage, Inc.
Materials(access provided with registration)
- Credit Refresher on A Cash Flow Snapshot
- Credit Refresher on Non-Financial Red Flags
- Financial Statements for Total Coverage, Inc.
- Transcript for Follow-Up Call on Larry Crevin
- Exercise for the Session 4 Webinar
- Webinar Presentation Slides
- Webinar Poll Questions
- Webinar Poll Solutions
- Exercise Solutions
This is Course 5 of 5 in the Introduction to Commercial Credit Skill Series
The 5 C's of Commercial Credit
Financial Statements and Business Organizations
Personal Qualities and Competitive Advantage
Critical Ratios and the First Necessary Condition for Success
Non-Financial Red Flags and the Second Necessary Condition
