Commercial Credit for Lenders

Unfortunately, lenders are not always formally trained in the sometimes complex area of commercial credit risk.  To address this, the Wisconsin RMA Chapter is pleased to offer a course covering the principles and practices of granting commercial credit.   While financial statement analysis, ratios, etc., will be referenced, they are not the primary focus of the course.  Instead, the broader concepts and risks of commercial credit will be examined

Contents include:

• Risk Evaluation   (FICO vs. financial statements)
• Consumer and mortgage lending vs. commercial credit
• Risks associated with commercial credit
• Regulatory perspectives on commercial credit
• Evaluating the commercial borrower’s industry and why.
• Elements of short term commercial credit (lines, single pay loans)
• Elements of long term commercial credit  (term loans, real estate loans)
• Overview and role of financial statements and business tax returns
• Elements of commercial cash flow analysis
• How to read and understand Loan Proposals
• Promise, Pledge, Perfection- The role of collateral
• Credit culture/credit discipline and commercial credit risk

This course is the bridge from knowing separate parts of the commercial credit process to having a better understanding of the entire process.