Repaying Loans: Cashflow, Collateral, And Personal Guarantees
Before approving any business loan request, a lender should be convinced that a business has the ability to repay debt based on its cashflow. If a business is not successful however, a lender may need to rely on either personal guarantees or the security pledged as collateral in order to be repaid. This program will explore these three means of getting repaid and identify the challenges that lenders face in each scenario.
• Cashflow: What it is and how to measure it
• Sources of Hidden Cashflow
• Collateral: How to quantify it? How much is it really worth?
• Personal Financial Statements: What They Tell Us (and don’t tell us) about a borrower
• Personal Guarantees: When they are useful and how to leverage them
• Credit Analysts
• Loan Officers
• Branch Managers
• Loan Committee members