Five Vital Financial Factors All Credit Analysts & Lenders Must Master 2024 | Community Bankers Webinar Network | 25 July 2024 | Webinar

There are five vital financial factors that all lenders must analyze in order to evaluate a borrower’s financial condition.

Do you know what they are? Used in conjunction, they can detect any financial challenge a borrower is experiencing. This webinar will provide expert insight into the credit analysis process using a variety of financial tools.

After this webinar you’ll be able to:
• Know exactly where to start the analysis process
• Focus on the most salient factors to consider when determining the creditworthiness of borrowers
• Streamline the analysis process utilizing the critical factors to measure a borrowers’ ability to service short-term and long-term debt
• Understand how to calculate key credit ratios
• Measure changes in credit ratios and determine the positive or negative impact on the borrower’s cash flow
• Interpret the result of credit analysis and cash flow analysis, which will enhance the analyst or lender’s ability to write an effective credit memorandum

This session will explore the five vital financial factors all lenders must understand to determine a borrower’s overall financial condition: liquidity, leverage, asset management, operating performance, and cash flow. Liquidity measures the ability to meet short-term obligations as they become due. Leverage measures the degree to which a company’s assets are supported by creditors compared to support provided by owners. Asset management measures management’s ability to utilize capital assets to generate revenue. Operating performance measures management’s ability to generate profits from operating their companies. Cash flow measures management’s ability to generate cash from operating, investing, and financing activities.

This session will define each factor and explain why it is important in the credit analysis process. Methods to determine each factor will be explored including the use of financial statements, ratio analysis, reconciliation procedures, working capital analysis, and best practices in determining true cash flow.

Who should attend?
This informative session is designed for credit analysts, branch managers, consumer lenders, commercial lenders, loan review personnel, senior loan officers, senior credit officers, loan support personnel, and credit administration staff.

2024 Speaker

PRESENTER:

Jeffery Johnson
President & Senior Consultant, Bankers-Insight Group