The Lending Decision Process and the courses in the curriculum are products of The Risk Management Association.

In this series, Trainees will examine a company’s cash cycle and seasonal characteristics. They will interpret both short- and long-term borrowing causes and repayment sources.

Duration: Approximately 8 hours.

Audience: Loan trainees, credit analysts, and anyone with commercial lending authority.

Learning Objectives: After completing this course, students will be able to:

• Identify and measure cash cycles using days’ sales in receivables and days’ COGS in inventory and accounts payable.
• Identify the benefits and limitations of cash cycle analysis
• Determine variations in cash cycles by type of business
• Determine the effects of seasonality of business operations on the cash cycle.
• Interpret budgets of cash receipts and disbursements to estimate the amount and duration of seasonal borrowing needs.
• Identify the benefits and limitations of analyzing interim financial statements.
• Differentiate between seasonal and permanent asset and liability levels.
• Identify borrowing causes including sales growth, change in asset efficiency, change in trade credit, fixed asset expenditures, and change in net worth
• Determine repayment sources that are appropriate matches to each borrowing cause

The courses included in Series 4: The Cash Cycle, Seasonality and Discovering Borrowing Causes and Repayment Sources Curriculum are:

• LDP 4.1 – Business Cash Cycles
• LDP 4.2 – Seasonality
• LDP 4.3 – Discovering Borrowing Causes and Repayment Sources