Upon completion of the course, participants will be able to:
- Understand the basics of financial statement preparation
- Describe the difference between accrual and cash accounting
- Explain how revenue and expense recognition policies affect the income statement and balance sheet
- Describe the differences between compiled, reviewed and audited statements
- Explain the relationship between the balance sheet, income statement, and the statement of cash flows
- Perform debit and credits journal entries to final preparation of an income statement and balance sheet.
- Describe macroeconomic factors that affect a business and its ability to repay a loan
- Explain industry and business life cycles
- Evaluate business, industry and management risk elements and their effect on loan repayment
- Identify key accounts on the financial statements
- Develop questions to ask about trends in the accounts on the financial statements
- Analyze key ratios including liquidity, leverage, asset management, profitability and coverage ratios
- Evaluate sources and uses of cash on the financial statements
- Construct and analyze cash flow statements
- Describe the difference between operating, investing and financing cash flows
- Construct and analyze projected cash flow statements
- Identify primary and secondary sources of repayment
- Evaluate the risks associated with lines of credit, term loans, permanent working capital loans, and commercial real estate transactions
- Describe the key elements used to structure a loan
- Present their loan recommendations, including structure, pricing and covenants before a mock loan committee
- Explain different corporate structures and tax returns including: C Corporations, S Corporations, Partnerships, and Sole Proprietorships
- Explain key loan documentation requirements.
- Identify early warning signs of problems loans including external indicators, operational indicators, and financial indicators
- Describe the internal macro and micro process for problem loan detection
The Eensight approach is to customize all materials and case studies to reflect the lending environment actually experienced by the participant. Classroom lecture and discussion is supplemented by group exercise and role-play to keep the course both fast paced and interesting.
The course is customized to reflect the proficiency participants have displayed in the diagnostic assessment.
Who Should Attend?
Individuals who have a training need based upon diagnostic assessment results from either Eensight, RMA, Omega Performance Corporation or Moody’s.