Cash Flow Analysis Part 2: Deeper Analysis, Balance Sheet & External Factors

Dive deeper into the world of credit analysis. How effective is your stress testing? What are the red flags in a borrower’s balance sheet? How do external factors affect a borrower’s cash flow? At the end of the day, a loan’s structure impacts repayment. Do you have best practices in place?

Learning Objectives

• Better understand how the balance sheet impacts repayment risk
• Identify external factors unique to each borrower that can impact sustainable cash flow
• Identify secondary and other alternative sources of repayment
• Stress test the borrower’s repayment ability under different scenarios
• Appreciate the best usage of short-term and bridge loans, including their unique risks
• Understand how loan structure impacts repayment

This presentation will build on the topics discussed in Cash Flow Analysis Part 1. Assessing repayment ability is far more than just calculating debt service coverage. Do you understand the impact a borrower’s balance sheet can have on cash flow and know the red flags to watch? In addition, this webinar will cover external factors that can impact a borrower’s ability to maintain cash flow, including a section on stress testing to help assess repayment risk.

In addition, this training will address short-term (including construction and multiple advance) loans and bridge loans. Although done infrequently, they can cause significant losses if not underwritten and managed appropriately. Regardless of loan purpose, a poorly structured loan can mask repayment problems and collateral coverage and is often a characteristic of charged-off loans.