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FINANCIAL APPLICATIONS
Developing Credit Solutions
Targeted Skill Level: Beginner
Duration: 2 - 3 hours
COURSE DESCRIPTION
Bank Relationship Managers are chartered with growing their lending business profitably. Developing Credit Solutions improves the credit analysis and client relationship skills of Bank Relationship Managers. Specifically designed for professionals who target small to mid-size business clients, this course helps managers diagnose a client's credit needs, and develop the most appropriate solution for the client as well as the bank.
A series of vignettes based on real small business banking relationships introduce the learner to the fundamentals of financial analysis and how to
look for the compelling "story" behind successful credit relationships. How to read and analyze a balance sheet and income statement are covered in detail.
GOALS
After completing this course you will be able to:
- Understand the purpose and value of financial analysis
- Become familiar with small-business financial analysis
- Develop interviewing and research skills for work with new and prospective customers
- Learn to anticipate an underwriter's questions
- Improve effectiveness and efficiency of loan closings
- Find (and recognize) lucrative new opportunities with existing clients
CASE SIMULATION
Analyze situations of four small businesses and identify the best loan package for each.
- Santé & Associates is a thriving medical clinic with a predominantly elderly clientele but is experiencing occasional account overdrafts.
- FT Enterprises, Inc. operates three franchises of SuperSubs, a national sandwich chain. Examine a situation in which a relatively new bank customer
makes a request for a line of credit.
- Peregrine Plastics, LP, a longstanding bank customer, intends to purchase a
new injection molding machine. Review the company's "desk file" to assess the company's financial condition.
- A1 Office Supply is a locally owned business facing stiff competition from Big Box office supply stores moving into the area. The store banks with a competitor, providing an opportunity to consider ways of winning over a non-bank customer.
INSTRUCTIONAL PATH CONTENT
- Overview: Bank's Market Focus
- Targeting a Different Mix of Borrower Clients
- Credit Quality: Which risks fit within Bank's portfolio?
- Foundational Lending Concepts - Understand why businesses borrow
- Marketing Orientation: Managing Client Expectations
- Evaluating a Credit Opportunity: Financial Analysis
- Income Statement Analysis
- Revenues
- Expenses
- Cost of Goods Sold
- Operating Expenses
- Interest Expense:
- Balance Sheet Analysis
- Liquidity Analysis -
- Current Assets: What are they and what is their significance to a credit decision?
- Components
- Accounts Receivable
- Inventory
- Current Liabilities: What are they? Components
- Trade Payables and Accruals
- Short-term seasonal debt
- Current Maturities
- Working Capital
- Long-Term Assets and Capital
- Fixed Assets
- Long-Term Debt and Loan Structuring
- Evaluating a Credit Opportunity: Other Approach to Client Relationships: Credit Issues
- Branch manager as "Relationship Manager"
- Collecting Relevant Information
- Overcoming Obstacles
- Setting Expectations of the Client
- Post-closing issues
JUST-IN-TIME CONTENT
- More than 150 Glossary terms
- Sample "Insights" clips to show customers what we can provide by recording
their experts (screens 1.02, 1.03, 1.07, 1.09, 1.10, 1.13 and 1.15 and others)
- FAQs
Presented in the Interactive Directed Learning Model™
Call us at 610.388.0969 or use our convenient contact form.
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