Level 1: Understanding Business Borrowers

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Understanding Business Borrowers focuses on understanding business industries and types, plus why they borrow money. It also introduces basic concepts of business financial accounting and entity structures.

Audience: Commercial and/or Business bankers and Credit Analysts

Courses included in the Understanding Business Borrowers curriculum are:

  • Business Sectors and Operating Cycles
  • Why Businesses Borrow
  • Business Legal Structures and Life Cycles
  • Introduction to Business Financial Statements
  • How Business Financial Statements are Constructed (Accounting Refresher)

Course Learning Objectives:
After completing these courses, students will be able to:

Business Sectors and Operating Cycles

  • Explain the operating cycles of various business industries
  • Analyze the financial data and evaluate the risks of the different industries

Why Businesses Borrow

  • Explain how a firm’s cash flow cycle can affect debt requirements and repayment sources
  • Identify the reasons businesses need to borrow
  • Identify the various borrowing arrangements used to structure a business loan
  • Describe the way alternative lending sources compete with or complement community banks

Business Legal Structures and Life Cycles

  • Define the basic types of legal structures available to a business
  • Describe the general characteristics of the four stages in the business life cycles

Introduction to Business Financial Statements

  • Describe the financial statement analysis process
  • Describe basic guidelines for preparing a spreadsheet and analyzing the data
  • Identify and evaluate a borrower’s financial strengths, weaknesses, and uncertainties
  • Explain the different types of financial statement preparation
  • Describe the other components associated with financial analysis

How Business Financial Statements are Constructed

  • Compare and contrast the cash method and accrual method of accounting
  • Construct a balance sheet and income statement on the accrual basis for an example business

Course Credits:
ICB: 8 CLBB

Duration: 
6hrs:30min

Price:
Member: $150
Non-Member: $200

ABA Library:
Commercial Lending