Financial Projections for Determining Long-Term Cash Flow Repayment Ability

20 May 2022
12:00 PM PST | 03:00 PM EST
60 Minutes

DAYS

HRS

MIN

SECS

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
Webinar Option
Live + Recorded Session
Live + Transcript
Live + Training CD
Transcript (PDF Transcript of the Training)
Downloadable Recorded Session
Training CD
Group Session Participants + Recorded

Live Session for 10 Participants (For adding extra attendees please contact our Customer Support Team)

Speaker Profile

ins_img Dev Strischek

A frequent speaker, instructor, advisor and writer on credit risk and commercial banking topics and issues, Martin J. "Dev" Strischek principal of Devon Risk Advisory Group based near Atlanta, Georgia.  Dev advises, trains, and develops for financial organizations risk management solutions and recommendations on a range of issues and topics, e.g., credit risk management, credit culture, credit policy, credit and lending training, etc.  Dev is also a member of the Financial Accounting Standards Board’s (FASB’s) Private Company Council (PCC).  PCC’s purpose is to evaluate and recommend to FASB revisions to current and proposed generally accepted accounting principles (GAAP) that are …

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