Financial Projections for Determining Long-Term Cash Flow Repayment Ability

Credit & Lending

Financial organizations extend credit to borrowers when the borrowers show the ability to repay the loans extended. Ideally, a request for a five-year loan should be supported by a 5-year cash flow projection, and this session will show you how to project balance sheet, income statement, and cash flow for a period that matches the proposed loan term as well as to evaluate the underlying assumptions.
First, the session will explain the interrelationships among revenue projections, the expenses needed to support the sales growth as well as the working capital assets, fixed assets, and liabilities necessary to support revenue growth.  Second, the session will offer tips on how to analyze the underlying assumptions such as profitability, productivity, efficiency, and earnings retention.

Who Should Attend: Loan Officers, Branch Managers, Credit Department Manager, Credit Administration Manager, Loan Review Officers

Learning Objectives

  • Learn how to validate revenue projections by using the break-even point to determine minimum revenue and the sustainable growth rate to estimate maximum revenue growth
  • Learn how to estimate the working capital investment and the fixed asset investment needed to support the borrower’s projected sales growth
  • Learn how to calculate the amount of borrowing needed to support the borrower’s projections and how to underwrite the financing

Speaker

Dev Strischek
Principal
Devon Risk Advisory Group
As principal of Devon Risk Advisory Group, Dev Strischek specializes in credit risk and commercial banking management, training, and development. He is a frequent speaker, instructor, advisor, and writer for many different educational groups and associations. Dev is also recently retired from his role as SVP and senior credit policy officer at SunTrust Bank, Atlanta, where he was responsible for developing, implementing, and administering credit policies for SunTrust’s wholesale lines of business; including commercial, commercial real estate, corporate investment banking, capital markets, business banking and private wealth management.

Webinar Fees

Pricing For Price Season Pass
Bank Member $195 $0
Bank Nonmember $395 $0
Affiliate Member $195 $0
Affiliate Nonmember $395 $0

Season Pass Members receive 4 individual logins to every webinar

Additional Info

Participants will earn 1.0 CPE credit

Field of Study: Specialized Knowledge

Prerequisites: None

Advanced Preparation: None

Program Level: Basic

Delivery Method: Group Internet Based

Refunds and Cancellations: Webinar registrations are non-refundable. If the registrant is unable to attend the designated time and date of the webinar, a playback link and any written materials will be provided within 2 business days following the conclusion of the webinar

Western Bankers Association is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website:www.nasbaregistry.org.

Register

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