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Level 1: Understanding Business Borrowers

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

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