Introduction to the Credit Write Up
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In this 1st course of the Master the Credit Write-Up Skill Series, participants will examine credit write-ups, focusing on borrowing causes, cash sources for debt service, risks, and mitigants. Emphasis is on UCA cash flow statements and loan covenants.
Certificate
1 credit or $295
Cost
1.5 - 2 Hrs.
Duration
1 hr.
Prep Time
1
Quiz
Overview
Participants examine the analytical focus and content of the credit write-up, or underwriting memorandum, with special emphasis on the four fundamental issues that must invariably be addressed and assessed in every credit write-up - the borrowing causes, the source of cash to service debt, the relevant risks to each cash source of debt service, and mitigants to the risks. In addition, they examine the use of specific analytical tools and techniques - with specific emphasis on the Uniform Credit Analysis (UCA) cash flow statement - and the application of specific loan covenants in effectively assessing each of the fundamental issues.
Who Should Take This Course
This Course is ideal for participants currently in or aspiring to enter the following job functions:
- C & I Lending
- Loan Review
- Credit Analysis
Prerequisites
Familiarity with accrual financial statements and common performance ratios, a working knowledge of the UCA cash flow statement, and an understanding of the generic commercial credit decision process.
Objectives
By the end of the webinar, participants will be able to:
- Identify the four fundamental issues that must be addressed and resolved for virtually every lending transaction.
- Understand and state how to apply the UCA cash flow statement in identifying historical and projected borrowing causes.
- Understand and state how to apply the UCA cash flow statement in identifying historical and projected debt service from business cash flow - the primary source of repayment.
- Provide reasons why it is important to properly identify all likely repayment sources, the risks to those repayment sources, and the practical mitigants to each risk.
- Identify the difference between description and analysis in expressing conclusions from the analytical process in the credit write-up.
- Identify the role of the Business Drivers in explaining a borrower's cash and accrual results in the process of exploring the essential analytical steps in reaching a credit decision.
Materials(access provided with registration)
- Credit Refresher on The Credit Write-Up
- Credit Refresher on EBITDA - The Last Word?
- Credit Refresher on The ABCs of Cash Flow
- Webinar Poll Solutions
- Exercise Solutions
- Exercise for the Webinar
- Webinar Presentation Slides
- Webinar Poll Questions
- Webinar Poll Solutions
- Exercise Solutions
This is Course 1 of 3 in the Master the Credit Write-Up Skill Series
Introduction to the Credit Write Up
Credit Write-Up Best Practices
Spreading Financial Statements
