CLDP - In-Depth Cash Flow


Beth Parker

There are at least nine alternative approaches to assessing a borrower’s cash flow for debt service. Each provides a different prospective on sources and uses of cash and each has a role in underwriting and monitoring a lending relationship. In this session, students will compare and contrast alternative approaches to cash flow and demonstrate the appropriate application of each approach in assessing and monitoring a borrower’s financial performance. Students can expect to learn how to determine the maximum line of credit appropriate for a borrower and the factors which will determine when it is appropriate to convert a revolving debt to amortizing debt. The class will also introduce six issues that have been addressed in a well-structured loan.