Tuesday, October 12, 2021 (Both Parts 1 & 2)
12:00 – 3:30 pm (Eastern Time)
11:00 – 2:30 pm (Central Time)
10:00 – 1:30 pm (Mountain Time)
9:00 – 12:30 pm (Pacific Time)
There are at least nine approaches to assessing a borrower’s cash flow available for debt service. Each provides a different perspective on sources and uses of cash. Each has a role in underwriting and monitoring a lending relationship.
This credit training will compare alternative approaches to cash flow and demonstrate the appropriate application of each approach in assessing and monitoring a borrower’s financial performance. The webinar will teach participants how to determine the maximum line of credit appropriate for a borrower and the factors which will determine when it is appropriate to convert revolving debt to amortizing debt.
BONUS MATERIALS: 3 case studies to demonstrate the alternative approaches. Also, a handout detailing issues in underwriting when using EBITDA/Interest + CMLTD for calculating debt service coverage ratio.
After completing this 2-part credit training webinar, participants will be able to:
- Compare nine approaches to quantifying cash flow
- Discuss the pros and cons of various presentations of the statement of cash flows
- Define the priorities for the use of cash and when it is appropriate to reorder those priorities e.g. term out a line of credit.
- Assess the adequacy and volatility of cash flows and describe the impact on loan structure including term, collateral advance rates, coverage ratios and financial leverage
- Project future cash flows using a projection tool
- Employ the concepts in two case studies
3.0 CPE Credits