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
For 27 years, John Barrickman has served as President of New Horizons Financial Group, a financial services industry consulting firm nationally recognized as an expert in the areas of comprehensive credit risk management, credit process, loan policy formation, asset quality rating frameworks, risk based pricing and lender development. John is a frequent speaker and subject matter expert on credit policies and procedures at industry events nationwide. John is also a Consulting Associate for Capital Performance Group.
3.0 CPE Credits