HR Training 2020 - Cash Flow Analysis Of Borrower's Repayment Ability

Overview
There is an old saying in credit analysis, "Borrowers pay back loans from cash flow, not profits." But it is not just cash flow; it is cash flow from operations that is the most desirable source of repayment because it is generated by a borrower managing its working capital assets and earning a sustainable profit.
This webinar will explain the difference between profits and cash flow as well as cash flow from operations vs. cash flow from financing and investing activities. After all, borrowing from another lender or liquidating fixed assets to pay you back ultimately hurts the long-term viability of the borrower.
Why should you Attend
The webinar will explain how the cash flow statement is derived from the balance sheet and the income statement, and then it will describe its three component cash flow activities-operating, financing, and investing. By the end of the session, you will see how cash flow is incorporated into the analysis and underwriting of a business borrower.
Areas Covered in the Session
Upon completion of this webinar, the participant will have a good understanding of how cash flow is calculated and more importantly, how to interpret its meaning. Specific areas that will be covered include:
An explanation of how Cash Flow Analysis relies on the conversion of an Accrual Basis Financial Statement into a Statement of Cash Flow (or Cash Basis Statement) because loans are repaid with cash and not profits
Global Cash Flow Analysis Methodology utilizing financial statements, tax returns and credit reports of commercial borrowers and individuals
Comparison of operating cash flow to the more inaccurate traditional cash flow (profits plus depreciation) and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) method of determining cash flow
A free cash flow method which can convert EBITDA into operating cash flow
Who Will Benefit
Commercial Loan Officers
Credit approvers
Loan/credit review staffs
Business Development Representatives
Branch Managers
Business Credit Analysts
Risk Managers of Real Estate companies and FIs
Accountants and Auditors
Speaker Profile
Dev Strischek A frequent speaker, instructor, advisor, and writer on credit risk and commercial banking topics and issues, Dev is principal of Devon Risk Advisory Group and engages in consulting, speaking and training on a wide range of risk, credit, and lending topics. As former SVP and senior credit policy officer at SunTrust Bank, Atlanta, he was responsible for developing, implementing, and administering credit policies for SunTrust's wholesale lines of business--commercial, commercial real estate, corporate investment banking, capital markets, business banking, and private wealth management. He also spent three years as managing director and credit approver in SunTrust's Florida commercial lending and corporate investment banking areas, respectively. Prior to SunTrust, Dev was chief credit officer for Barnett Bank's Palm Beach market. Besides stints at other banks in Florida, Kansas City, and Ohio, Dev's experiences outside of banking include CFO of a Honolulu construction company, combat engineer officer in the U.S. Army, and college economics instructor in Hawaii, Missouri, and Florida. A graduate of Ohio State University and the ABA Stonier Graduate School of Banking, he earned his M.B.A. from the University of Hawaii.