PROFICIENCY IN CREDIT ANALYSIS FOR LENDING TO BUSINESS

Live-Online Training: N 250,000.00
Classroom Training: N 350,000.00
3 - 4 participants: 5% discount
5 or more participants: 10% discount

(Available also for Customised Training by Duration, Venue & Fee)

 Programme Description

The environment of the Nigerian economy today makes Banking in the country to be most challenging. For this reason, Credit Analysts need the tools and skills to analyze their opportunities and the accompanying risks. This training on Credit Analysis for Commercial Lending helps participants to do that.

Course Objectives

At the end of the course, the participants will go away with:

• Step-by-step techniques of assessing business risk
• Structuring loan packages
• How to make lending decisions
• The strategies and techniques to make precise and good loan judgments
• How to monitor loans for performance. The course provides a road map to follow for collecting and analyzing the information needed to assess the risks in a loan request. This road map helps to determine whether, and under what conditions, the bank should make the loan. To learn this road map, participants will be taken through how to:
• Gather data
• Analyse risks
• Identify ways to mitigate the risks
• Structure loans that are appropriate to the customer’s repayment capacity.

A skilled Credit Analyst, who this course hopes to develop, will be able to easily and quickly weed out ineligible loan requests and analyze new lending opportunities that others may miss.

Course Contents

DAY ONE

The Nigerian Banking Environment

• Current State of the Economy
• The Prudential Guidelines
• Other Central Bank of Nigeria regulations.

The Preliminary Credit Screening

• The Borrower’s Business
• Gathering Information.

Why Businesses Borrow

• Asset Conversion Cycles
• Timings of Financial Needs.

Borrowing for Sales Growth

• Why Sales Growth Causes Borrowing
• Seasonality in Sales
• Financing Long-term Sales Plans.

Borrowing in Business Slowdown

• The slowdown in Inventory Turnover
• The slowdown in the Collection of Accounts Receivable.

Borrowing for Fixed Assets Purchase

• Replacing Old Fixed Assets
• Expanding Fixed Assets.

Other Factors Warranting Borrowing.

 DAY TWO

Analysis of Risks.

Analysis of Repayment Sources

Industry Risk Analysis

• Classification of Nigerian Industries
• Industry Risk Characteristics
• Writing the Industry Analysis

Business Perspective Analysis

• Production and Supply Analysis
• Product-Market Match
• Management Analysis

Financial Statement Analysis

• Company Financial Analysis
• Qualitative Issues in Financial Statement Analysis
• Window Dressing of Financial Statements
• Predicting Business Failure Using Financial Statements
• Developing Expectations.

DAY THREE

Assessing Operations Management

• Examining the P&L Account for Accounting Risk
• Common-Size Analysis

Assets & Liability Analysis

• Examining the Balance Sheet for Accounting Risk
• Capital Structure
• Analysing Liquidity
• Analysing Solvency
• Operating Efficiency

Cash Flow Analysis

• Key Performance Indicators for Cash Flow
• Cash Flow Interpretation.

Financial Projections

• Estimating Cash Receipts
• Estimating Cash Disbursements
• Sensitivity Analysis.

DAY FOUR

Writing the Credit Analysis Report

Structuring the Loan

• Choosing the Right Facility
• Disbursement Terms and Conditions
• Repayment Schedule
• Loan Agreements and Covenants.

Loan Management

• Monitoring Loan Performance
• Identifying Key Trouble Signs.

DAY FIVE

A Strategy for Problem Loans

• Loan Grading System
• Loan Review
• Prevention of Loan Losses
• Loan Workout
• Debt Recovery
• Legal Procedures.