Global Cash Flow: What, How, Why
This new program has been developed in response to banker requests, regulatory encouragement, plus questions and frustration about the mechanics and “real world” usefulness of global cash flow as a meaningful tool of credit analysis.
Determining a borrower’s ability to service current and proposed new debt is, of course, a necessity. Cash flow analysis has become the “holy grail” of commercial and real estate lending. Global Cash Flow is a variation of cash flow analysis that combines personal and business finances, in concept eliminating the corporate liability shield, in an attempt to develop a variation on understanding debt service. The results show the amount the borrower could have withdrawn from all entities under borrower ownership (or control) after debt service for all entities. It does not matter in global cash flow analysis whether or not cash was actually, or legally, transferred between entities to enhance debt service of a borrower.
Although some lenders may question the value of this method of credit analysis, examiners have encouraged many bankers to analyze their borrowers globally. Many believe the best use of global cash flow is in commercial real estate lending scenarios where a borrower may be involved in many separate entities (projects) and have various ownership positions in each unique project.
- Understanding what is meant by global cash flow;
- Discussion of the most frequent applications of global cash flow;
- Proper techniques of developing global cash flow;
- Formats and case analysis for different borrower applications;
- Pros and Cons (strengths and weaknesses) of global cash flow
The seminar is intended for commercial and real estate lenders, credit analysts, loan review personnel, whether or not experienced in the use of global cash flow.
Bob Ullom, a nationally recognized banking educator, began his career as a CPA who came to banking in 1970 to establish a credit analysis function. Bob has been president of two start-up banks and led both fast growing institutions to profitable, sound status. Since 1989, Bob has provided relevant, “real world” training in over 35 states for bankers associations and individual banks. He has been effectively helping bankers deal with accounting issues throughout his career as a banker and a teacher.
Institute of Certified Bankers: Visit http://www.icbmembers.org/login.aspx for instructions regarding self-reporting. Estimated credits: 2 hours CPB/CLBB.
Member price: $265.00 | Non member price $530.00
Member price: $280.00 | Non member price $560.00
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1516 Xavier St., Ste 500, Denver, CO 80204
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