Cost Management, Finance & Banking

Financing Principle: Optimizing Borrowing/Lending Efforts

The program is all about understanding the bank credit application associated with granting a commercial loan. It is essential for people and/or businesses, which are in need of funds to be familiar with the bank credit application use for facility approval. Participants will explore what elements are important to the lenders or banks before granting a commercial loan.

In credit notes, the assessment of the business and its management are highlighted and called 3 Cs of Lending – Character, Capacity, and Capital.

This course will also include Porter’s 5 Forces Model to analyze an industry in the context of a company’s business attributes, debt capacity, cash flow and liquidity, as well as security and documentation. In addition, risk triggers and covenants will be reviewed, including types of covenants and purposes as well as setting financial and non financial covenants.

Course Outlines

• Loan Purpose and Source of Repayment.
• Key Client Information and Competitor Analysis.
• Risks Analysis and Mitigation Checklist (industry risk, business risk, management risk, account performance list, financial risk, facility structure list, security risk, and social, environment, and ethical risk).
• Types of Covenants.
• Financial Projections Do and Don’t.
• Legal Due Diligent Checklist.
• Negotiation Issues and Trade Offs.
   

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