Series 6: The Cash Cycle and Seasonality


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

In this series, Trainees will construct and analyze financial projections to interpret future ability to repay debt, identify the most appropriate type of loan, and to evaluate margins of protection in the event of changes in business, industry, or management risks.


Duration: Approximately 6 hours.


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


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

  • Explain the benefits of using financial projections in a credit analysis
  • Prepare a pro forma monthly balance sheet to evaluate peak borrowing needs based on a company’s cash budget and projected monthly income statements
  • Prepare an annual financial projection
  • Interpret the ability to repay debt given assumptions about cash flow drivers and other variables
  • Interpret loan types based on projected borrowing needs and repayment sources
  • Determine an appropriate repayment schedule for long-term loans


The courses included in  Series 6: The Cash Cycle and Seasonality Curriculum are:

  • LDP 6.1 – Using Pro Forma Balance Sheets to Interpret Short-Term Repayment Ability
  • LDP 6.2 – Preparing and Interpreting Annual Financial Projections
  • LDP 6.3 – Using Projections to Help Determine Appropriate Loan Type