Debt Service Coverage Calculations in Underwriting 2024 | Community Bankers Webinar Network | 19 September 2024 | Webinar

Can you name one of the fundamental building blocks of credit analysis?
• Is calculating debt service coverage in your wheelhouse? Do you know how changes on the borrower’s balance sheet affect cash flow? What key items need to be considered when evaluating cash flow? This expert-led, insightful program will take a deep dive into debt service coverage calculations in underwriting.

After This Webinar You’ll Be Able To:
• Accurately and confidently calculate repayment for all types of commercial-purpose loans
• Better assess a borrower’s ability to sustain adequate cash flow by including forward-looking repayment analysis
• Identify the differences between and usage of accrual and cash-based financial statements
• Understand the purpose for both UCA and traditional cash flow analysis and how each is used
• Better appreciate the differences and usage of various types of financial statements and tax returns

Calculating debt service coverage (DSC) is a fundamental building block of credit analysis (AKA how do we get paid back?). One of the most important concepts is that today’s loans are paid with tomorrow’s cash flow. In addition to the basic techniques of cash flow analysis, including traditional DSC versus UCA, this program will explore the items that must be considered when assessing a borrower’s ability to sustain adequate cash flow over the term of the loan. The emphasis will not only be on how to make the calculations, but also on making an appropriate decision about the type of analysis based on the expected loan repayment.

This presentation will also address the impacts of cash- vs. accrual-based accounting choices and how changes on the borrower’s balance sheet affect cash flow. It will cover the use of tax returns, internally prepared financial statements, and accountant-prepared financial statements in constructing accurate cash flow analyses.

Who Should Attend?
This informative session is designed for credit analysts, loan officers, loan review officers, and anyone seeking a refresher course on debt service coverage.

2024 Speaker

PRESENTER:

Robert L. Viering
Riverpointusa LLC