Commercial  Lending (CS218- Accelerated)

 

HOME

 

Course Description:

Commercial lending is a highly specialized field within the financial services industry, and commercial loan officers need to be extremely knowledgeable to serve their customers' diverse business needs. The Commercial Lending course is not only a great learning tool but a valuable day-to-day resource as well. Topics include an analysis of various types of business operations, financial analysis of the business, ratio analysis, balance sheet components, net worth calculation, dealer financing programs, structuring a commercial loan and more. Any employee who assists commercial customers should complete this highly informative, interactive learning session. A complete list of included lessons appears below. .

Introduction to Commercial Lending

Topics include:

  • Basic types of business operations
  • Manufacturers
  • Wholesalers
  • Retailers
  • Service businesses

Lesson objectives:

  • Identify the basic types of business operations
  • Identify working assets and operation cycle
  • Identify the operating the cycles of manufacturers, wholesalers, retailers, and service businesses
  • Identify the working assets of various types of businesses
  • Identify the potential financing needs and sources of repayment for each business type
  • Identify the key risks in lending to each type of business

Financial Analysis & Commercial Loans

Topics include:

  • Review of types of financial statements
  • Sales
  • Cost of goods sold
  • Operating expenses analysis

Lesson objectives:

  • Define the role and purpose of financial analysis
  • Identify the basic organizational structure of the income statement
  • Identify the types of financial statements
  • Identify key income statement issues and how they affect risk analysis

Balance Sheets and Commercial Loans

Topics include:

  • Current assets
  • Fixed assets
  • Other assets
  • Current liabilities
  • Long-term liabilities
  • Net worth

Lesson objectives:

  • Identify balance sheet components
  • Identify key balance sheet issues
  • Reconcile net worth calculation

Ratio Analysis & Commercial Loans

Topics include:

  • Ratio uses and limitations
  • Liquidity ratios
  • Activity ratios
  • Leverage ratios
  • Profitability ratios

Lesson objectives:

  • Explain the uses and limitations of ratios
  • Identify when ratio analysis is useful
  • Construct liquidity, activity, leverage and profitability ratios
  • Interpret and apply ratio calculations to case study
  • Identify key lending risks from ratio analysis

Loan Structure for Commercial Lending

Topics include:

  • Elements of loan structure
  • Cash flow analysis

Lesson objectives:

  • List the four components of loan structure
  • Match purpose and repayment to the loan structure
  • Calculate cash flows using the direct method
  • Identify the key areas of a cash flow statement
  • Analyze a cash flow statement
  • Identify documentation needed to extend credit

Dealer Finance

Topics include:

  • The bank/dealer relationship
  • Floor plan loans
  • Dealer financing
  • Trust receipts
  • Dealer's reserve account
  • Collateral checks

Lesson objectives:

  • State the two types of dealer finance bank activities.
  • Describe the policies and procedures associated with floor plan lending.
  • Describe the policies and procedures associated with dealer finance lending.
  • State the differences between a dealer agreement with recourse and one without recourse
  • State the reasons for the dealer reserve fund and the factors that govern the amount required for that fund.
  • Name the item that is evidence of debt and is required to be executed for each loan.
  • Describe the items to be reviewed during a lender's collateral inspection.

 

Enrollment Form

Download and print an enrollment form from here, complete and fax to 904-354-1834