Commercial Loans to
Small Business
SELF-PACED
E-LEARNING
25-30
HOURS
Evaluate small business loan requests to make sound credit decisions
OVE RVIEW
When evaluating business loan requests, lenders must maximize opportunities and mitigate risks. This
course provides the skills and knowledge required to perform an in-depth analysis of a small business
credit request. Participants execute the entire credit decision process, including initial assessment of
structuring.
W H O S HOU L D ENR OL L
Anyone with small business lending responsibilities, including lenders, credit underwriters, loan reviewers
and branch managers.
RE S ULT S AND B US I NES S BE N E FI T S
Upon completion, participants will be able to:
Improve relationships with small business owners through an informed understanding of their businesses
TM
Assess industry risk, management quality, and the effectiveness of company strategies and goals
L E A RNING M O D ULES
1
2
3
4
5
6
7
Assessing the
Opportunity
Identifying
Borrowing
Causes
Assessing
Business, Industry
and Management
Risk
Analyzing
Business
Financial
Analyzing
Personal
Financial
Analyzing Cash
Flow and
the Loan
E-LEARNING By OMEGA PERFORMANCE
Omega Performance E-Learning courses, accessible online at any time, are
developed to be highly interactive—maintaining high learner interest that
enhances understanding and application of the material. Concepts are presented
accessible and user-friendly.
Learning Module Descriptions
1
ASSESSING THE OPPORTUNITy
TM
framework for comprehensive
5 ANALyzING PERSONAL FINANCIAL
STATEMENTS
risk analysis
including the operating and capital investment cycles
the loan
Presents the legal and operational characteristics of most common
forms of business organization
Assesses the use of individual income tax returns to verify income
and expenses and evaluate assets
current credit request or potential credit opportunity and gathering
key documents
Presents personal leverage and coverage ratio analysis
2
IDENTIFyING BORROWING CAUSES
6 ANALyzING CASH FLOW AND
PROjECTIONS
3
Addresses the impact of borrowing causes on loan structure and
repayment
as an important part of repayment analysis
Explores the use of borrowing cause analysis to anticipate future
borrowing needs
service requirements
ASSESSING BUSINESS, INDUSTRy,
AND MANAGEMENT RISk
Explores the impact of changes in sales, margins, turnover, and
Outlines the risks related to the growth stage of the business
Leverages sensitivity analysis as a tool to predict future
industries
Examines economic, market, demographic, and other forces that
impact a business
Evaluates the ability of management to deal with risks inherent in
the industry
7 STRUCTURING THE LOAN
Introduces the common types of credit facilities and their proper
usage
its owners
guarantees, and subordination
characteristics
price and loan structure
4
Examines the purpose and content of loan agreements
ANALyzING BUSINESS FINANCIAL
STATEMENTS
the credit analysis, and provide an early warning system for lenders
statements
importance and analysis
and methodology used to analyze debt service capacity
FIND OUT MORE ABOUT OMEGA PERFORMANCE TRAINING
For detailed course descriptions and to speak with an Omega training consultant, please contact us at:
North America: +1 703-558-4440 // solutions@omega-performance.com // omega-performance.com
+65 6505-2060 // apacsolutions@omega-performance.com // omega-performanceapac.com
Training Effectiveness
Benchmarking Report
Commercial Loans to Small Business
Average Percentage Increase in Knowledge
LEARNING MODULES
21%
PRE-TEST SCORES
POST-TEST SCORES
1. Assessing the Opportunity
78
93
2. Identifying Borrowing Causes
62
90
3. Assessing Business, Industry, and Management Risk
76
92
4. Analyzing Business Financial Statements
70
92
5. Analyzing Personal Financial Statements
72
93
6. Analyzing Cash Flow and Projections
68
92
7. Structuring the Loan
74
92
Key Takeaways
22%
24%
28%
62
90
Iden
Identifying
nti
tiffy
f
fying
Borrowing
Borrow
wing
Causes
C
Pre-Test
70
92
68
Analyzing
Anal
aly
y g
yzing
yz
Business
Financial
Bu
usiness Finan
u
cial
Statements
S
Post-Test
Pre-Training Participants lacked critical
Commercial Loans to Small Business
skills that are necessary to recognize
the connection between borrowing
causes, loan structure, and repayment
ability. Further, participants also lacked
the ability to calculate and analyze
financial ratios and cash flow.
92
Analyzing
Anal
alyz
yz
zing
Flow
Cash Flo
C
ow and
d
Projections
P
j tii
Increase in Knowledge
The graph above displays the score data for the learning modules of
Commercial Loans to Small Business in which participants display the
greatest skill improvement, as demonstrated in the Pre-Test and Post-Test
differential.
OMEGA PERFORMANCE BENCHMARKING REPORT
Post-Training Post-Test results
highlighted an average 21%
improvement in key skills. Participants
were able to identify underlying reasons
for business borrowing (including
sales growth, operating cycle changes,
and the purchase of fixed assets),
and match those to appropriate loan
structures. In addition, participants were
able to successfully analyze financial
ratios and trends to identify risks to
repayment, and evaluate the ability of
historical cash flow to meet future debt.