C and I (Commercial and Industrial) Lending
Course Number: Seminar
Course Code: n/a
• Open Revolving Lines of Credit
• ABL/Monitored Lines of Credit
• EXIM Bank Facilities
• Guidance Facilities
• Equipment Loans
• Owner-Occupied Mortgages
• Letters of Credit
• SBA Guaranteed Facilities
For the above products, differentiate the analytic approach for:
• What financial information is necessary for review?
• What is the primary source of repayment?
• What are the differences in analyzing cash flow (traditional vs. operating)
• Transaction structure and monitoring controls?
• Determine what caused the need to borrow and tie the need to facility
• Company revenue trend in this down economy.
• Understanding relationship among receivables, payable, inventory and revenue levels.
• How does the financial position compare to their current industry standards?
• Business and industry risks
• Scalability of expenses.
• Reliability of suppliers and customers.
• Guarantors’ recent changes in financial condition and how does it relate to company
• Contingent debt and ability to handle both personally and corporate.
• Breakeven analysis for revenue, GPM, operating expenses, projections.
• Package contents i.e. Financial statements, tax returns, agings, company and guarantor background
• Statement quality and the importance of interims and comparable interims.
• Financial ratios
• Who is your target market?
• Know your borrower
• Desirable / undesirable credits
• Understanding customer needs; selling appropriately.
• Full relationship – better understanding and insight.
Audience: Anyone interested in Commercial & Industrial Lending