Financial Projections for Determining Long-Term Cash Flow Repayment Ability
Duration : 60 Minutes
Dev Strischek,
A frequent speaker, instructor, advisor and writer on credit risk and commercial banking topics and issues, Dev is principal of Devon Risk Advisory Group and engages in consulting, speaking and training on a wide range of risk, credit, and lending topics. As former SVP and senior credit policy off Read more
One of the most basic analytical and underwriting tools a banker must have is the ability to determine whether a borrower can repay its loans based on the financial information available.
Financial organizations extend credit to borrowers when the borrowers show the ability to repay the loans extended. Ideally, a request for a five-year loan should be supported by a 5-year cash flow projection.
Why Should You Attend:
Learn key assumptions in a projection and how to assess validity, the value of a downside-most likely projection to stress test the assumptions.
Course Objectives:
The session will explain the importance of revenues in projecting financial statements and cash flow. Then the session will show participants how to project the income statement, balance sheet and cash flow to calculate the loan amount needed to support projection and evaluate the ability of the borrower to repay the loan. Evaluation of underlying assumptions include the feasibility of revenue growth rate, profitability, productivity, efficiency, earning retention, and leverage. Besides calculating the loan amount needed to support the financial projection, analysis of the asset collateral base available to support repayment will be examined.
Course Outline:
• How revenue projection determines income statement and income statement determines balance sheet
• Critical role of working capital assets, capital expenditures and retained earnings in supporting projection
• How to generate cash flow projection with balance sheet and income statement
• How to estimate loan needed to realize financial projections
• How to underwrite loan needed to fit lending organization’s policies
• How to support loan with appropriate collateral and guarantees
What You Get:
• Training Materials
• Live Q&A Session with our Expert
• Participation Certificate
• Access to Signup Community (Optional)
• Reward Points
Who Will Benefit:
Credit analysts, credit managers, credit risk managers, risk managers, enterprise risk managers, chief credit officers, senior lenders, senior lending officer, bank director, chief executive officer, president, board chairman
Please reach us at 1-888-844-8963 for any further assistance or if you wish to register
100% MONEY BACK GUARANTEED
Refund / Cancellation policyGet In Touch
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