Course Goals
Traditional financial analysis teaches financial health analysis. Cash flow analysis builds on this to determine availability of funds to repay debt. Cash, not net profits, repays loan. Since today’s loan is repaid with tomorrow’s cash, understanding the present and future cash flows of the company are key to any loan decision. It also has ramifications on loan structure and covenants.
Course Objectives
Upon completion of the course, participants will be able to demonstrate their knowledge of the following:
- The difference between traditional and modern cash flow analysis.
- How to manually do a cash flow analysis.
- How to assess a company’s ability to handle debt obligations.
- To utilize both direct and indirect cash flow methods.
- To understand the nuances of automated cash flow methods.
- How to prepare and analyze projections.
- How cash flow can affect loan structuring.
- How to use sensitivity analysis to test key variables and their effect on cash flows.
Format and Timeframe
The FTG approach is to customize all materials and case studies to reflect the lending environment actually experienced by the participant. This course can be taught in two to three days depending upon the experience level of the participants.
Who Should Attend?
Senior lenders
Commercial lending officers
Financial analysts and underwriters
Branch Managers
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