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Advanced Credit Analysis

Business Issue - As business opportunities become more competitive and credit risk analysis and structure become more complex, experienced commercial risk managers and lenders need to refine the tools and techniques that they use to underwrite loans. The need to constantly enhance credit analysis skills has never been more evident than today, yet institutions are challenged to provide this training to their more experienced staff in an efficient and cost-effective manner.

Omega Performance’s Solution - Advanced Credit Analysis offers enhanced skill development on current best practices and high-impact commercial risk analysis techniques through an efficient half-day workshop delivery. Through its clinic approach, Advanced Credit Analysis provides commercial lenders with advanced knowledge and skills that will sharpen their understanding of accounting risks and analysis of business financial statements.

What Is Included

Advanced Credit Analysis includes three case studies, each addressing a unique set of issues in financial analysis for middle-market borrowers. Each case challenges participants to take an extra step by digging deeper into the financial analysis to uncover additional issues and insights. Key learnings include:

  • Detecting risks related to aggressive/improper accounting practices, specifically capitalizing routine maintenance expenses and overcharging a reserve for acquisition costs for non-acquisition expenses
  • Applying the concept of working capital to determine whether credit amounts are appropriate and whether facilities are appropriately matched to needs
  • Comparing the analysis of cash flows with analysis of sources and uses of working capital and identifying key differences
  • Analyzing debt service coverage using different approaches – EBITDA vs. Net Cash from Operations (NCFO)
  • Analyzing the impact of changes in cash flow from changes in profit margins vs. changes in sales terms

Delivery Options

Advanced Credit Analysis is entirely case-based and normally delivered as a half-day workshop. There is no self-study or prework required for the standard delivery. The half-day workshop can be combined with other training solutions provided by Omega Performance. A morning session and an afternoon session of the clinic can also be scheduled back-to-back for two different groups. As another alternative, the three individual case studies can be delivered in a separate workshop sessions, with each running between 1 to 1 and ½ hours.