Wednesday, September 21, 2022
2:00 – 3:30 pm (Eastern Time)
1:00 – 2:30 pm (Central Time)
12:00 – 1:30 pm (Mountain Time)
11:00 – 12:30 pm (Pacific Time)
A quick but accurate response to a borrower’s loan request is critical in today’s competitive lending environment. Small business borrowers prefer a quick ‘no’ if the lender is not interested in the lending opportunity so they can talk to other lenders. Credit analysts do not want to spend time on a lending opportunity that does not meet the bank’s underwriting guidelines. Other lenders do not want the credit process bogged down with incomplete applications or borrowers who are not creditworthy which adversely impacts their ability to deliver an exceptional customer experience to their creditworthy borrowers.
Banks are taking steps to determine early in the underwriting process through a prescreening worksheet if the borrower has provided a complete application. The lender then quickly determines if the borrower has a viable core business, a strong balance sheet and the business is improving or deteriorating.
The foundation for a lending decision is the Five Cs of Credit. Banks are utilizing a Loan Screening Worksheet to quickly quantify the Five Cs and determine if the loan applicant meets bank basic underwriting guidelines.
At the end of this webinar, participants should be able to:
- Define the purpose and focus of financial analysis
- Identify and quantify the three drivers of borrower profitability
- Identify and quantify the primary determinants of the strength of the balance sheet
- Utilize a “30 Second” analysis to determine if the borrower has a viable core business, an acceptable balance sheet and the business’ financial condition is improving or deteriorating
- Identify and quantify the Five Cs of credit
- Utilize a Loan Screening Worksheet to compare key measures of the borrower’s creditworthiness to bank underwriting guidelines
- Utilize a tool to project a borrower’s incremental working capital requirement
- Determine when it is appropriate to term out a borrower’s line of credit
- Apply the concepts in a case study.
Who Should Attend:
Lenders, Credit Analysts, Portfolio Managers
1.5 CPE Credits