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 the projection and evaluate the ability of the borrower to repay the loan. Evaluation of underlying assumptions includes 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.
WHY SHOULD YOU ATTEND?
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.
Learn key assumptions in a projection and how to assess validity, the value of a downside-most likely projection to stress test the assumptions.
LEARNING OBJECTIVES
Participants will learn:
- How revenue projection determines income statement and income statement determines balance sheet
- The 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 loans needed to fit lending organization’s policies
- How to support loan with appropriate collateral and guarantees
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
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.
Learn key assumptions in a projection and how to assess validity, the value of a downside-most likely projection to stress test the assumptions.
Participants will learn:
- How revenue projection determines income statement and income statement determines balance sheet
- The 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 loans needed to fit lending organization’s policies
- How to support loan with appropriate collateral and guarantees
- 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
