Series 6: Using Financial Projections to Fine Tune the Credit Analysis
ABA SELF-PACED ONLINE TRAINING
Constructing and analyzing financial projections to interpret future ability to repay debt, identify the most appropriate type of loan, and to evaluate margins of protection in the event of changes in business, industry or management risks.
- LDP 6.1 – Using Pro Forma Balance Sheets to Interpret Short Term Repayment Ability
- LDP 6.2 – Preparing and Interpreting Annual Financial Projections
- LDP 6.3 – Using Projections to Help Determine Appropriate Loan Type
Loan trainees, credit analysts, and anyone with commercial lending authority.
- Explain the benefits of using financial projections in a credit analysis
- Prepare a pro forma monthly balance sheet to evaluate peak borrowing needs based on a company’s cash budget and projected monthly income
- Prepare an annual financial projection
- Interpret the ability to repay debt given assumptions about cash flow drivers and other variables
- Interpret loan types based on projected borrowing needs and repayment sources
- Determine an appropriate repayment schedule for long-term loans
The Lending Decision Process
The New York Bankers Association is a Local ABA Training Provider.
NYBA Professional Development at (212) 297-1679