Tools of Credit Analysis         

By the end of this course you will be able to:

.In this course, participants will learn how to spread financial statements, analyze the asset conversion cycle, describe asset-based lending, develop cash flow projections and historical cash flow statements, and explain the key components of loan agreements

Course Outline:

.1- Financial Statements

.1-1 Types of financial statements

.1-2 Spreading financial statements

.1-3 Balance sheet and income statement analysis

.2- The Asset Conversion Cycle

.2-1 Lending basics

.2-2 Evaluate the company’s ability to complete the asset conversion cycle

.2-3 Risks encountered during the asset conversion cycle

.2-4 How to derive the asset conversion cycle from the financial statements

.2-5 Case study

.3- Asset-based Lending

.3-1 The concept of asset-based lending

.3-2 Asset-based lending

.3-3 When to engage in asset-based lending

.3-4 The difference between cash flow lending and asset-based lending

.3-5 Examples

.3-6 Case study

.4- Cash Flow

.4-1 Cash flow projections

.4-1-1 Cash flow assumptions

.4-1-2 Projected cash flow

.4-1-3 Cash flow and the lending decision

.4-2 Historical cash flow

.4-2-1 Cash flow analysis – indirect and direct methods

.4-2-2 How to prepare the cash flow projections to evaluate the project financial needs and the proper financial structure

.4-3 Case study

.5- The Loan Agreement

.5-1 Terms, conditions and collateral requirements in the loan agreement

.5-1-1 Use of loan proceeds

.5-1-2 Sources of loan repayment

Target Audience:

.course is intended for officers in lending, loan monitoring and risk departments in banks and employees in investment and economic departments in financial and economic institutions

Prerequisites:

This course entitles you to attend:

Upon successful completion of this course, participants will obtain:

.Training Attendance certificate