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Commercial Lending Fundamentals
Bankers who work with customers
at the lower end of the small business market are often
not directly involved in the credit approval process,
but rather forward lending opportunities to other areas
of the bank for approval. But while they may not be
responsible for the underwriting of the loan, it is
still important that they earn credibility in the eyes
of the bank's clients by understanding their borrowing
needs and being conversant with respect to their financial
statements. Commercial Lending Fundamentals was
designed to provide key skills to this particular group
of bankers, while keeping in mind the time and cost
constraints faced by most financial institutions.
| Course
Objectives |
| After
completing this course, learners will be able to: |
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Understand the borrowing needs
of their clients |
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Collect relevant credit information
from potential clients efficiently |
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Identify items banks consider
when reviewing a company's financial statements |
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Ask clients pertinent questions
to enhance the bank's underwriting process |
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Recognize their role in balancing
the needs of the bank and the client |
| Course
Content |  |
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Why businesses
borrow money |
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Understanding
a company's cash cycle |
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Forms of business
organization |
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Understanding
the client's operations |
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Understanding
ownership and management |
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Introduction to
balance sheets and income statements |
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Understanding
cash flow |
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Dealing with limited
financial information |
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Considering personal
financial information |
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Understanding
borrowing causes and sources of repayment |
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Types
of loan facilities and repayment schedules |
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Collateral and
guarantees |
| Course
Units |
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Unit 1 - Commercial
Lending and Risk
Unit 2 - Learning About Your Clients
Unit 3 - Understanding Financial Statements
Unit 4 - Loan Structure Considerations
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| Target
Audience |
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Commercial Lending
Fundamentals is designed to provide key skills
to commercial lenders and branch bankers who deal
with the lower end of the small business market.
The course is appropriate for new hires or for
experienced employees who may not have had formal
credit training.
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| Delivery
Options |
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A key feature of Commercial
Lending Fundamentals is the flexibility with
which it can be administered. One option is for
learners to take the course as an independent
self-study which will allow them to work at their
own pace based on their available time and any
existing knowledge of the subject matter. This
arrangement is ideal for instances when there
are only a few learners at a time or the learners
are spread out geographically.
To capitalize on the benefits
of group interaction and to provide a more coordinated
training initiative, Commercial Lending Fundamentals
can also be taught in a workshop format over a
two-day period. For added flexibility, the course
is designed so that it can be taught in two consecutive
days, two one-day sessions, or even four half-day
sessions. A comprehensive Administrator's Guide
accompanies the course, which allows a manager
or other appropriate bank employee to effectively
lead these workshop sessions.
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