Level 5: Loan Structuring, Documentation, Pricing and Problem Loans

Description: Level 5: Loan Structuring, Documentation, Pricing and Problem Loans completes the lending process by providing guidance on loan structuring and documentation issues in response to the analysis of the quantitative and qualitative risks. This will include an overview of key documents, loan agreements and covenants, as well as negotiating and pricing. This Level concludes with an introduction to problem loans.

Audience: Commercial and/or Business bankers and Credit Analysts

The courses included in the Level 5: Loan Structuring, Documentation, Pricing and Problem Loans and their objectives are listed below:

Commercial Loan Structuring

  • Identify borrowing structures and describe their advantages
  • Explain the purpose of commercial loan support

Identifying Viable Secondary and Tertiary Sources of Repayment

  • Identify sources of repayment that are appropriate for various commercial loan borrowing arrangements and the factors that affect collateral value
  • Explain key issues for assessing various types of collateral commonly used for commercial loans 

Key Documents, Loan Agreements and Covenants

  • Describe the loan documentation process and requirements
  • Explain the best practices for loan closing—preparing, conducting, and following up

Loan Pricing and Negotiating

  • Describe pricing considerations for a commercial loan
  • Identify and explain the loan negotiation process
  • Explain the role of the business banker in the loan negotiation

Problem Loans

  • Identify the costs and causes of problem loans
  • Detect problem loan warning signs
  • Explain the steps in resolving a problem loan
  • Describe the solutions to problem loans—rehabilitation, liquidation, and bankruptcy

Course Credits:


Member: $150
Non-Member: $200

ABA Library:
Commercial Lending