Programme: Essential Underwriting Skills - Remote

START 9.30 - FINISH 13.00

DAY ONE SESSION ONE

Welcome

  • Introductions and accomplishment planning
  • Purpose and aims of the workshop

Legal Entities

  • What is a business and its purpose?
  • Characteristics of the main entities: Sole Trader, Partnership, Limited Liability Partnership, Private & Public Limited Companies, Companies Limited by Guarantee, Unlimited Bodies
  • Identifying the key differences and assessing the main risk considerations for lenders

Understanding Financial Statements

  • The flow of money through a business: recording business transactions
  • How is a business funded?
  • Financial Statements: concepts and conventions and constituent parts
  • Key definitions and terminology: Assets, Liabilities, Capital, Revenue and Expense
  • Structure of the Statement of Financial Position (Balance Sheet)
  • Structure of the Income Statement (Profit & Loss Account)

End of Session

DAY TWO SESSION TWO

Interpreting Financial Statements

  • Tangible and intangible fixed assets, understanding depreciation
  • Current assets and current liabilities: working capital management
  • Long term commitments: debt serviceability
  • Shareholders’ Funds and retained earnings and reserves
  • Profit & loss account: profit measures and margins, concept of EBITDA
  • The difference between profit & cash

Break

Cash Flow Analysis/Working Capital

  • The importance of liquidity
  • Detailing the factors that affect cash flow
  • The concept of working capital - can it meet obligations?

DAY THREE SESSION THREE

Key Ratio Analysis

  • Importance of ratio analysis
  • Interpretation of business performance using the power of ratio analysis
  • The main ratios: profitability, liquidity, investment

Break

Principles of Lending and Danger Signals

  • Risk assessment using different frameworks
  • Non-financial risks: asset, customer, external factors
  • Assessment of management, competition and market
  • What are the warning signs of a business in distress?
  • The impact of poor working capital management

End of Session


DAY FOUR SESSION FOUR

Underwriting a Lending Proposal

  • Gathering critical information
  • Compiling and structuring a persuasive credit report
  • Planning the content of a credit report
  • Focusing on key financial and non-financial risk analysis


Break

Underwriting a Lending Proposal (Cont.)            

  • Make a lending decision on the specific case study provided
  • Presentation and debrief of underwriting decisions

End of Session and Course

 

 

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