Short-Term Loan Structuring for Commercial Borrowers – Getting That Line of Credit Right
Short-term loans and lines of credit require examination of several factors to reach the proper amount required. This is very important because underfunding or overfunding the amount a borrower requires to fund their operations can cause problems.
During this session, you will learn how to calculate the length of the financing gap, which is the time between receipt of cash from the operating cycle and the time required to pay creditors. Specifically, the course will demonstrate the key financial ratios to determine the financing gap, and how to utilize this data to determine the Asset Conversion Cycle and the Operating Cycle.
The course will then proceed to calculate the amount required to fund the financing gap by determining the Net Working Investment and the potential sources of cash to fund the gap before the institution’s funds are deployed.
What You’ll Learn
Who Should Attend
This session will benefit all individuals involved in credit administration including, but not limited to, credit analysts, commercial lenders, consumer lenders, branch managers, loan review personnel, senior loan officers, senior credit officers, directors, and members of the executive management team.
