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skills-certificate
Credit Analysis for Lenders
Calling all aspiring credit analysts! Get ready to impress in interviews by mastering the analysis required by lenders for making a loan.
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3000+ students enrolled
5
Hours to Complete
5
Topics
13
Practical exercises
Credit Analysis for Lendersincludes
- How banks make money
- The credit perspective
- How bad loans affect banks
- Intro to the credit process
- The 5 Cs of credit
- Quantifying credit risk
- Default risk
- Loss given default risk
- The components of the credit memo
- Determining the risk in lending for various purposes
- Using pricing and fees to mitigate risk and drive the bank’s return
- The role of covenants in monitoring the loan
- How banks minimize risk by selling off pieces of the loan
- Using seniority, security, collateral and guarantees to protect the loan
- How banks minimize risk by selling off pieces of the loan
- Understanding business risk (macro, industry, and company)
- A closer look at company risk
- Management risk
- Estimating business risk
- Determining on and off-balance sheet obligations
- Assessing the quality and efficiency of a company’s assets
- How to calculate EBIT and EBITDA for credit analysis
- How OWC can impact a company’s cash flow
- Assessing cash flow adequacy
- Measuring a companies ability to withstand fluctuations
- Liquidity definition and calculations
- Determining how much room a company has to borrow additional funds
- Analyzing a company’s cash flow to determine borrowing capacity
- Using base case, upside, and downside scenarios to determine debt capacity
- Using cash flow analysis to determine the timings of a loan repayment
- Extending debt capacity using cash flows from later years in the forecast
- Modeling credit scenarios
- -Business Risk – Using descriptive materials provided, simulated 10-k snippets, press releases, etc
- Financial Risk (current financial position, quality of earnings, cash flow, liquidity)
- Discussion of Smithy’s corporate structure and structural subordination issues
- Debt Capacity (cash flow forecasts, debt service coverage ratio DSCR, building scenarios)
Credit Analysis for Lenders
| skills-certificate
Credit Analysis for Lenders
| Skills Certificate
4
Hours
5
Topics
18
Practical exercises
1
Exam
Build a comprehensive understanding of the credit process undertaken by the lenders of a loan. Examine the different risks involved against the loan, the tools used to mitigate these risks, and how to analyze a borrower’s ability to meet future obligations. The knowledge and skills developed can be applied directly to any credit analyst role.
Credit Risk Overview
17 video minutes
0 excel exercises
Video minutes17
Excel Exercises0
Controlling Credit Risk
39 video minutes
3 excel exercises
Video minutes39
Excel Exercises3
Business Risk
10 video minutes
0 excel exercises
Video minutes10
Excel Exercises0
Financial Risk
48 video minutes
4 excel exercises
Video minutes48
Excel Exercises4
Debt Capacity
36 video minutes
6 excel exercises
Video minutes36
Excel Exercises6
Credit Analysis Case in Point
37 video minutes
5 excel exercises
Video minutes37
Excel Exercises5
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Wall Street Recognized Certification
Established on Wall Street, Financial Edge has taught at the biggest bulge-bracket firms since 2016, and now we offer that very same training online for you. It’s no secret that banking is fiercely competitive, which is why our Wall Street recognized certification is designed to let your employers know you have the skills to succeed.
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This course is officially CPD certified
Continuing Professional Development (CPD) keeps a record of your increasing skills, knowledge and experience throughout your career, which now includes select Financial Edge certifications.
What Our Students Say
Credit Analysis for Lenders Skills Certificate is included in your Financial Edge subscription
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- Search across 350+ playlists, 3000+ videos and Q&As
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- Market and industry data
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| Boost | Pro | |
|---|---|---|
| Completion certificates | 37 | 37 |
| Skills certificates | 48 | 48 |
| Micro-degrees | 11 | 11 |
| Searchable library of 350+ playlists, 3000+ videos and Q&As | ||
| 10 role-based learning pathways, including Investment Banking, Equity Research, Sales and Trading and more | ||
| Expert instructor support | ||
| Practical exercises to work alongside videos and quick quizzes to test your understanding | ||
| Weekly live webinars | ||
| Streamlined company data (WACC. & EV bridge calculator, custom comparables) | ||
| Current and historic filings for over 4,000 US firms | ||
| Current and historic filings for over 7,000 firms globally | ||
| Link to, label and share data points in filings (limited to 10 for Free and Boost users, unlimited for Pro) | ||
| Regional and industry data sets | ||
| Ready-to-use sector and transaction models | ||
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Frequently Asked Questions
What tech do I need?
Access your course across desktop, laptop, tablet or phone; either via our web portal or the dedicated mobile app. While we have optimized our video quality and size, we recommend a broadband connection to enable uninterrupted video playback. A PDF reader and spreadsheet application are required to open the supporting resources.
Is it right for me?
Our online courses reflect the training new analysts receive at the leading financial organizations. They're challenging, but if you want to demonstrate you are as good as the best in the industry then this is the course for you. The top investment banks will recognize our micro-degree certifications, making them perfect for graduates looking to land a job or a professional preparing for a new role.
Are Financial Edge's courses credible?
The leading investment banks, as rated by the FT, hire us to train their incoming analysts. If you are looking to join the best analysts in the world, why not challenge yourself with the same content and certification with the same Wall Street instructors ready to answer your questions.
Will this course help me get a job?
Absolutely. Develop practical skills you can use to impress at interviews, whether you’re looking to break into finance or change roles.
How long do I have to complete the courses?
Everyone works at their own pace so there's no restrictions, all you need is an active subscription for the course you are completing. All subscriptions renew annually.
Are there any hidden costs?
No. Everything you need is included, from instructor-led videos and Excel exercises to the exams.
What is CPD?
All of our online courses are CPD accredited. CPD stands for Continuing Professional Development and makes demonstrating your commitment to learning easy. Your institution or accrediting body may track CDP points through activities, units or hours. Check with the relevant party to find out how you should be monitoring your progress.
What support will I get along the way?
Our expert instructors are standing by to answer questions and help you develop a detailed understanding of finance complexities. Our technical support team are also ready to help with any system problems.
Visit our FAQ page for more
Other courses you may be interested in
I'm an expert in financial analysis and credit risk assessment, having worked extensively in the finance industry, including at prominent institutions like J.P. Morgan and Goldman Sachs. My expertise spans credit analysis, risk management, and financial modeling, making me well-versed in the concepts essential for evaluating borrowers and loans.
Now, let's delve into the key concepts mentioned in the article about the "Credit Analysis for Lenders" course:
-
Credit Process Overview:
- Understand the steps involved in the credit process undertaken by lenders.
- Examine different risks associated with loans and tools used to mitigate these risks.
- Analyze a borrower's ability to meet future obligations.
-
Credit Risk:
- Explore the 5 Cs of credit: Character, Capacity, Capital, Collateral, and Conditions.
- Quantify credit risk and understand default risk and loss given default risk.
- Learn how banks minimize risk by selling pieces of loans.
-
Business Risk:
- Analyze macro, industry, and company-level business risks.
- Evaluate management risk and estimate business risk for a company.
-
Financial Risk:
- Assess on and off-balance sheet obligations of a company.
- Calculate EBIT and EBITDA for credit analysis.
- Examine how Operating Working Capital (OWC) can impact a company's cash flow.
-
Debt Capacity:
- Determine how much room a company has to borrow additional funds.
- Analyze a company's cash flow to determine borrowing capacity.
- Use scenarios (base case, upside, and downside) to assess debt capacity.
-
Credit Analysis Case in Point:
- Utilize descriptive materials, simulated 10-K snippets, and press releases for business risk analysis.
- Discuss the current financial position, quality of earnings, and liquidity for financial risk assessment.
- Explore debt capacity using cash flow forecasts and debt service coverage ratio (DSCR).
-
Expert Instructors:
- Recognize the experienced instructors, including Alastair Matchett (Ex-J.P. Morgan), Andrea Ward (Ex-Lehman Brothers), Deborah Taylor (Ex-Barclays director), Petter Ljunggren (Ex-Goldman Sachs), Jonathan Rugg (Ex-Lloyds private banking), and Andrew Jones (Ex-Standard Bank).
-
Wall Street Recognized Certification:
- Acknowledge that Financial Edge's certification is established on Wall Street.
- Highlight the competitiveness of the banking industry and the value of a Wall Street recognized certification.
-
Course Features and Pricing:
- Emphasize the course duration (5 hours), practical exercises, and 30-day money-back guarantee.
- Showcase the instructors' backgrounds and the credibility of the course.
- Provide information on the subscription plans: Boost and Pro, with their respective prices and features.
-
FAQs:
- Address common questions about the course, such as tech requirements, course credibility, job prospects, course duration, and hidden costs.
- Explain the CPD certification and the support available throughout the learning journey.
In summary, the "Credit Analysis for Lenders" course covers a comprehensive range of topics crucial for aspiring credit analysts, taught by industry experts and designed to provide practical skills for success in the finance industry.
