Training

Business Credit Analysis

ED201 – Business Credit Analysis.  The second course in the EDFP certification program explores advanced techniques to determine if a business is a candidate for financing assistance.  You will look at the underwriting standards and procedures of commercial lenders, and adapt this knowledge to economic development loans.  You will acquire skills to obtain financing that fills the gap between conventional loans and projected cost of a project.  You will analyze the financial statements of various types of real companies – manufacturing, service and retail – and structure fixed asset and permanent working capital financing.  Topics include:

Credit Analysis Process

• Evaluating a company’s strengths and weaknesses
• Refining quality indicator and ratio analysis
• Assessing operating needs
• Measuring a company’s ability to digest growth

Permanent Working Capital Analysis

• Determining a company’s operating cycle
• Measuring PWC needs
• Financing a company’s growth

Cash Flow Analysis

• Analyzing cash flow management
• Determining debt capacity
• Matching sources and uses of funds
• Identifying fast growth syndrome

Projections and Deal Structuring

• Balance sheet and profit and loss statement projections
• Evaluating financing options
• Break even analysis
• Structuring fixed asset and PWC financing
• Restructuring financing packages

Prerequisite:  ED101