By the end of the course, delegates will be able to:

• Interpret financial information presented by clients

• Arrive at a reasoned decision for granting (or refusing) a client’s lending proposal

• For Corporate Clients

• For Small Business Clients

• For Personal Clients

• Define an acceptable monitoring and control process for client activity once the lending has been granted

• Understand how to structure a lending to give maximum available protection to the bank

• Explain how to spot adverse client activity – deliberate or unforeseen – which may indicate problems in repaying the lending

• Undertake the proper course to ensure that, a far as is possible, the bank’s asset – its lending – is repaid in full

Day 1 - Understanding Financial Statements

Session 1:

Balance Sheets

• How are they created?

• What do the respective sections mean?

• Where does the information come from?

• Profit and Loss Accounts

• How do they differ from Balance Sheets?

• What information is included?

• Where does that information come from?

• Budgets and Cash-Flow Forecasts

• Why are these so key in Lending Appraisal?

• What do they tell a lending banker?

• More-importantly what do they not tell a lending banker?

Session 2:

Analysing Financial Statements

• Analysis of the trends and ratios in the financial statements covering:

• Liquidity

• Security

• Profitability

• Financial Management and Efficiency

• What do these trends tell a lending banker?

• As before, what do these trends not tell a lending banker?

Day 2 - Corporate Clients

Session 1:

Analysis of Corporate Client lending propositions

• Building expertise using a detailed Corporate Lending case study

• Understanding that different types of company require subtly different shades of lending evaluation

• Managing and monitoring the lending

• Security:

• Is it necessary?

• What company security can we take?

• How do we take and perfect our security?

Session 2:

Small Business Clients

• As for Corporate Clients (see above)

Day 3 - Personal Clients

Session 1:

Analysis of Personal Lending propositions – understanding the criteria against which lending decisions are made (and which will differ between clients)

• Building expertise through a series of detailed Case Studies on Personal Lending propositions

• CAMPARI as a mnemonic to ensure that all aspects of the lending decision are fully considered

• Analysing personal information (in the absence of Balance Sheets, P&L accounts etc.)

• Making the decision; structuring the lending; and getting repaid

• Monitoring the lending portfolio – looking for early-warning signs

• Security:

• Is it necessary?

• What personal security can we take?

• How do we take and perfect the security?

Course Close