Credit Analysis

Overview
Traditionally, lenders have faced credit risk in the form of default by borrowers. To this date, credit risk remains major concern for lenders worldwide. The more they know about the creditworthiness of a potential borrower, the greater the chance they can maximize profits, increase market share, minimize risk, and reduce the financial provision that must be made for bad debt. This product provides fundamental understanding of the credit risk analysis process and discusses in detail, various aspects of financial statement analysis, including ratio and cash flow analysis, among others to help in making better credit-related decisions. It also looks at various non-financial factors such as Business Plan, Industry/Sector, Top Management, etc. that could affect the creditworthiness.

After completing this course you will be conversant with:

Apply credit analysis to assess borrowers in real cases
Perform ratio analysis and cash flow analysis
Structure loan products in a competitive way
Identify and work-out problem loans

Target Audience
Every professional involved in the global financial services industry (as a provider, user, regulator or advisor of product/services, marketplace/exchange) would benefit from KESDEE’s innovative solutions.

Credit Analysis
Time taken to complete each Course: One - Two hours

1. Overview of Credit Analysis

Objectives
Credit Risk
Credit Analysis
Seven C’s
Credit Analysis Process

2. Lending Process

Objectives
Introduction
Credit Process
Documentation
Loan Pricing and Profitability Analysis
Regulations

3. Financial Statement Analysis-I

Objectives
Introduction
Ratio Analysis
Liquidity Ratios
Turnover Ratios
Profitability Ratios
Leverage Ratios
Market Ratios

4. Financial Statement Analysis-II

Objectives
Introduction
Elements of Cash Flow Statement
Direct Method
Indirect Method
Interpreting Cash Flows

5. Non-Financial Analysis

Objectives
Non financial analysis
Economy analysis
Industry analysis
Business analysis

6. Asset Classification and Loan Loss Provisioning

Objectives
Asset Quality
Quantitative and Qualitative Review
Asset Classification
Special Mention Asset
Loan Loss Provisioning

7. Borrowing Causes and Sources of Repayment

Objectives
Introduction
Operating Cycle
Capital Investment Cycle
Sources of Repayment

8. Problem Loans

Objectives
Introduction
Asset Management Companies
Securitization of NPLs
Debt Restructuring
Preventing Problem Loans

9. Consumer Installment Lending

Types and characteristics of consumer installment lending

Various types of Installment loans

Dealer Agreement, Recourse and Dealer Reserve

Common risks faced in consumer installment lending

10. Floor Plan Lending

Characteristics of Floor Plan Lending

Methods of Floor Plan Lending

Risks Associated with Floor Plan Lending

11. Accounts Receivable and Inventory Lending

Concept of Accounts receivable and inventory based lending

Risks faced in Accounts Receivable and Inventory Based Lending

12. Participation Loan

Concept of Loan participation

Need for Loan participation

Process of Loan participation

Risks faced in Loan participation

13. Letter of Credit and Loan Commitments

Concept of Letter of Credit (LC)

Types of Letter of Credit

Risks faced in Letter of Credit

Loan commitments, Un-funded lines of credit and their characteristics

Potential credit risk in loan commitments and un-funded lines of credit

Global Best Practices

For more information about our e-learning products and services
visit us at www.kesdee.com

The themes of this product are: