Pennsylvania Bankers Association Training Room
Pennsylvania Bankers Association Training Room, 3897 N. Front St. Harrisburg, PA 17110, USA

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Event Date Tue Nov 6 EST (about 3 years ago)
Location Pennsylvania Bankers Association Training Room
3897 N. Front St. Harrisburg, PA 17110, USA
Region Americas

This course is designed to address one of the more challenging aspects of lending: analyzing personal financial statements and tax returns. Assessing the borrower’s ability to convert assets to cash to pay short-term debt or honor a guaranty often requires significant adjustments to the borrower’s reported net worth. Adjusted gross income on Form 1040 bears no relationship at all to cash available to pay personal living expenses and debt service. To determine cash available, the lender must construct a personal cash flow using information contained in the personal financial statement, schedules of the personal tax return and schedules K-1 from partnerships, S Corporations and LLCs. Lenders recognize that the business and personal financial affairs of small business borrowers are closely intertwined, necessitating the integration of business and personal cash flow to determine global cash flow.


2018 Speakers

John R. Barrickman
Bank consultant focusing on risk management, credit process