Intro to Commercial Credit Analysis, Credit…

A comprehensive course designed to furnish credit professionals to make commercial lending decisions based on "conclusion-based" analysis. Participants will develop their analytical skills through the application of a logically structured framework which we present. Starting with the identification of the deal and credit structure, it logically works through the analysis process from business risk to financial risk then to structural risk. In addition, it will compare and contrast different industry dynamics.

This course contains 42 lectures across 8 sections, introducing and then covering each concept in-depth and providing examples.

More about this course and Starweaver

This course is led by a seasoned commercial and corporate credit industry practitioner and executive with many years of hands-on, in-the-trenches risk analyst work. It has been designed, produced and delivered by Starweaver. Starweaver is one of the most highly regarded, well-established training providers in the world, providing training courses to many of the leading financial institutions and technology companies, including:

Ahli United Bank; Mashreqbank; American Express; ANZ Bank; ATT; Banco Votorantim; Bank of America; Bank of America Global Markets; Bank of America Private Bank; Barclay Bank; BMO Financial Group; BMO Financial Services; BNP Paribas; Boeing; Cigna; Citibank; Cognizant; Commerzbank; Credit Lyonnais/Calyon; Electrosonic; Farm Credit Administration; Fifth Third Bank; GENPACT; GEP Software; GLG Group; Hartford; HCL; HCL; Helaba; HSBC; HSBC Corporate Bank; HSBC India; HSBC Private Bank; Legal & General; National Australia Bank; Nomura Securities; PNC Financial Services Group; Quintiles; RAK Bank; Regions Bank; Royal Bank of Canada; Royal Bank of Scotland; Santander Corporate Bank; Tata Consultancy Services; Union Bank; ValueMomentum; Wells Fargo; Wells Fargo India Solutions; Westpac Corporate Bank; Wipro; and, many others.

Starweaver has and continues to deliver 1000s of live in-person and online education for organizational training programs for new hires and induction, as well as mid-career and senior-level immersion and leadership courses.

If you are looking for live streaming education or want to understand what courses might be best for you in technology or business, just google:

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What's inside

Learning objectives

Understand the process of credit analysis including risk identification, analysis and mitigation
Build and apply finance skills to analyze business, financial and structural risks
Identify the appropriate information requirements for analysis and underwriting
Implement a structure for business risk analysis from macro, industry, and company-specific levels of detail
Apply industry and company specific risk analysis tools (including the bcg matrix and porter’s 5 competitive forces)
Analyze the key functional areas of a business, including through a swot analysis
Dig into a company’s key financial statements (including income statement and balance sheet)

Analyze financial statements and other relevant data to assess the creditworthiness of a borrower.
Determine appropriate credit risk categories and ratings for a borrower based on a thorough credit analysis.
Evaluate the feasibility of a credit request, taking into account the borrower's industry, market conditions, and other relevant factors.
Recommend credit decisions and lending terms based on the results of a credit analysis and risk assessment.
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Understand the process of credit analysis including risk identification, analysis and mitigation
Build and apply finance skills to analyze business, financial and structural risks
Identify the appropriate information requirements for analysis and underwriting
Implement a structure for business risk analysis from macro, industry, and company-specific levels of detail
Apply industry and company specific risk analysis tools (including the bcg matrix and porter’s 5 competitive forces)
Analyze the key functional areas of a business, including through a swot analysis
Dig into a company’s key financial statements (including income statement and balance sheet)
Analyze financial statements and other relevant data to assess the creditworthiness of a borrower.
Determine appropriate credit risk categories and ratings for a borrower based on a thorough credit analysis.
Evaluate the feasibility of a credit request, taking into account the borrower's industry, market conditions, and other relevant factors.
Recommend credit decisions and lending terms based on the results of a credit analysis and risk assessment.
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Syllabus

Just a brief "hello" and explanation for you.

In this module, you will learn how to analyze credit risk and assess borrower creditworthiness through financial statement analysis and other techniques.

This module covers the fundamentals of risk assessment including identification, analysis and evaluation of potential risks.

This module includes understanding of different legal structures of business entities such as corporations, partnerships and sole proprietorships.

In this module, you will learn the best practices of lending to small and medium enterprises, including risk assessment and loan underwriting.

Instructor Simon Green discusses the first section of accounting (part 1 of 11).

This module covers the fundamental concepts of financial accounting, including the preparation of financial statements and the accounting equation.

In this module, you will learn the process of designing, implementing and maintaining an accounting system and the use of technology in accounting.

This module includes understanding of the income statement, its purpose, components and interpretation for decision making.

In this module, you will learn the basics of balance sheet including its components and purpose, and how to interpret and analyze it.

This module covers the different types of costs, their classification and behavior and how they are used in decision making

In this module, you will learn the basics of fixed assets such as property, plant, and equipment including their acquisition, depreciation and disposal.

This module includes understanding of intangible assets, such as patents, trademarks, and copyrights, and their recognition, measurement, and disclosure.

In this module, you will learn the concept of net realizable value and its use in determining the value of inventory and impairment of assets.

This module covers the accounting treatment of leases, including the classification of leases and their impact on financial statements.

In this module, you will learn the accounting treatment of provisions such as liabilities and contingencies and the use of expected value in accounting.

This module includes understanding of the cash flow statement, its purpose, components, and interpretation for assessing liquidity and solvency.

In this module, you will learn about the changes in working capital and how it is used to evaluate the short-term financial performance of a company.

This module covers the accounting and reporting for a group of entities, including the preparation and presentation of consolidated financial statements.

In this module, you will learn about Macro Risk Analysis, including the evaluation of external factors that impact the economy and industries.

This module includes an in-depth understanding of Industry Risk Analysis, including the identification and evaluation of internal and external risks faced by the industry.

In this module, you will learn the concepts and techniques of competitive analysis to evaluate the strengths, weaknesses, opportunities and threats of competitors.

This module covers operational analysis techniques such as process mapping, flowcharting and performance metrics to evaluate internal operations and identify improvement opportunities.

In this module, you will learn the best practices and tools for assessing the effectiveness of management, including evaluating leadership, strategic planning and decision making.

This module covers advanced use of spreadsheets, including functions, formulas, modeling, and data visualization to manage and analyze financial and business data.

In this module, you will learn advanced concepts of income statement analysis, including ratio analysis, trend analysis, and benchmarking to evaluate financial performance.

In this module, you will learn the basics of the balance sheet, including its components and its role in financial analysis.

This module builds on the information from Part 1, diving deeper into the interpretation and analysis of a balance sheet.

In this module, you will learn how to use various financial ratios to analyze a company's performance and financial health.

This module includes a comprehensive overview of EBITDA and how it is used to approximate cash flow for financial analysis.

This module covers the use of solvency ratios to analyze a company's debt to net worth, and the ability to meet long-term obligations.

In this module, you will learn how to analyze and calculate inventory, accounts receivable, and accounts payable efficiency ratios.

In this module, you will learn how to analyze and interpret a company's cash flow and liquidity, understanding cash flow as an indicator of overall financial health.

This module covers the "SPACED" approach to cash flow analysis, including how to identify and analyze cash flows from operations, investments, and financing activities.

In this module, you will learn how to analyze a company's operational performance and how to identify and understand business cycles.

This module covers the impact of business cycles on financial amounts and quantities, and strategies for managing the volatility of business operations.

In this module, you will learn how to analyze the Asset and Cash Conversion Cycles and the impact on the financial position of a company.

This module includes a comprehensive overview of liquidity, including both operational and financial sources of cash and the impact on a company's access to cash.

This module covers various sources of non-operational cash, including investment income and financing activities.

In this module, you will learn about creating and interpreting management accounts, as well as assessing their effectiveness.

This module covers key focus areas in management accounts and how to prioritize limited time and resources.

This module covers industry, business and management projections and forecasts, and how to develop them.

This module covers how to make financial assumptions and evaluate payout alternatives for managing cash flow and banking.

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Teaches skills, knowledge, and tools that are highly relevant to industry

Examines credit risk analysis and assesses borrower creditworthiness through financial statement analysis and other techniques

Taught by a seasoned industry and executive with many years of hands-on work

Reviews summary

Practical framework for commercial credit analysis

According to learners, this course offers a comprehensive and practical framework for commercial credit analysis. Students consistently praise the instructor's extensive industry experience and his ability to simplify complex topics, providing invaluable real-world insights. The curriculum is noted for its logical structure, covering everything from fundamental accounting principles to advanced financial and business risk analysis, including detailed financial statement analysis and cash flow methodologies. While a majority find the content highly relevant and beneficial for their careers, a few reviewers noted that the presentation style could be more engaging and that a basic accounting foundation is helpful. Overall, it's considered an essential course for aspiring and current credit professionals.

Highly relevant for commercial lending and finance professionals.

"Absolutely essential course for anyone serious about a career in commercial credit."

"This course fills a critical gap for those transitioning into commercial lending roles."

"I've already applied some of the frameworks to my daily work."

"The course content is spot on for anyone in commercial lending."

Provides a logical, in-depth approach to credit analysis.

"Absolutely essential course... particularly appreciated the detailed breakdown of financial statements and the cash flow analysis module."

"As a new analyst, I needed a structured approach to credit analysis, and this delivered."

"Very thorough course. It goes into good detail on business and financial risk."

"From basic principles to advanced ratio analysis and cash flow, it covers it all."

Led by a seasoned practitioner offering invaluable insights.

"The instructor's practical insights, drawn from years of experience, were invaluable."

"The instructor is a true expert, and it shows. The breakdown of financial risk analysis... incredibly insightful."

"The instructor's clarity and industry background make this a standout."

"The instructor's ability to simplify complex ideas is remarkable."

Content is solid but delivery could be more engaging.

"Decent overview. The content is comprehensive, but the presentation style could be more engaging."

"Disappointed... the delivery is dry. It felt like watching a long PowerPoint presentation."

"The material is solid, no doubt there. But the presentation felt outdated. It's a lot of talking head and slides."

Benefits from a foundational understanding of accounting.

"Good course, but definitely requires some prior understanding of accounting basics. If you're completely new, you might struggle."

"This course is not for complete beginners. I found it very difficult to grasp without a strong accounting foundation..."

"Might be better for someone with some prior experience."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Intro to Commercial Credit Analysis, Credit Risk and Lending with these activities:

Review Financial Accounting

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Reviewing the basics of financial accounting will strengthen your foundation for understanding and applying the concepts covered in this course.

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Review the accounting equation and its components.
Practice recording transactions in a journal and posting them to the general ledger.
Prepare a simple income statement and balance sheet.

Review Credit Analysis Techniques

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Review the key concepts of credit analysis to refresh your knowledge and prepare for the course.

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Review the basics of credit analysis, including the different types of credit and the factors that affect creditworthiness.
Review the different types of financial statements and how to analyze them to assess a company's financial health.
Review the different credit scoring models and how they are used to assess creditworthiness.

Excel Modeling for Financial Analysis

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Guided tutorials in Excel modeling will provide you with hands-on practice in using the tools and techniques commonly employed in credit analysis and financial risk assessment.

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Create a spreadsheet model to perform a basic financial analysis.
Use Excel functions and formulas to analyze financial data.
Build a dashboard to visualize key financial metrics.

Eight other activities

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Case Study Discussion Group

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Participating in a case study discussion group will allow you to engage with other students, share your insights, and gain different perspectives on credit analysis.

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Read and analyze a credit risk case study.
Join a discussion group and share your analysis.
Listen to and evaluate the perspectives of other group members.
Develop a consensus on the best course of action for the case.

Complete Credit Analysis Exercises

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Complete a series of exercises to practice applying the credit analysis techniques you have learned.

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Analyze a company's financial statements to assess its financial health.
Develop a credit scoring model to assess the creditworthiness of a potential borrower.
Make a credit decision based on the results of your analysis.

SWOT Analysis Practice

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Engaging in SWOT analysis practice exercises will strengthen your ability to identify and evaluate a company's strengths, weaknesses, opportunities, and threats.

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Conduct a SWOT analysis on a real-world company.
Develop strategies to address the company's weaknesses and capitalize on its strengths.
Present your SWOT analysis and recommendations to a group.

Develop a Financial Risk Assessment Model

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Reinforces the key concepts of financial risk analysis and commercial lending by applying them to a realistic project.

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Identify and collect relevant financial data.
Build a financial model to assess risk factors.
Analyze the results and make recommendations.

Volunteer at a Local Credit Union

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Volunteering at a credit union will provide you with practical experience in applying credit analysis principles and interacting with borrowers.

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Assist loan officers with credit analysis tasks.
Review loan applications and make recommendations on approvals.
Attend training sessions on credit analysis and lending best practices.

Create a Credit Analysis Presentation

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Create a presentation that explains the key concepts of credit analysis and how to apply them in the real world.

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Develop an outline for your presentation.
Research and gather data to support your presentation.
Create visual aids to help explain your points.
Practice delivering your presentation.

Develop a Credit Risk Assessment Model

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Building a credit risk assessment model from scratch will allow you to apply the concepts and techniques learned in the course to a real-world project.

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Gather and analyze historical credit data.
Identify key risk factors and develop a scoring system.
Validate the model using a holdout sample.
Implement the model in a credit risk management system.

Develop a Credit Analysis Model

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Develop a credit analysis model that can be used to assess the creditworthiness of potential borrowers.

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Identify the key factors that affect creditworthiness.
Collect data on a sample of borrowers.
Develop a statistical model to predict creditworthiness.
Test and validate your model.

Career center

Learners who complete Intro to Commercial Credit Analysis, Credit Risk and Lending will develop knowledge and skills that may be useful to these careers: