SBA: Projecting Cash Flow - Best Practices and Evaluation Techniques 2017

Topics

• A review discussion about how cash flows through a business and the importance of identifying the ‘cash cycle’ ahead of reviewing the financial projections
• Brief case study of Banco Popular’s outcome when failing to use information on hand to test cash flow projections prepared by a third-party loan originator for several loans to same franchise
• Identification of some practical axioms applicable to financial forecasts that will strengthen the context of the numbers for the reviewer
• Best practices to break down the applicant’s projection numbers and systematically review them line-by-line to look for flaws or reasoning gaps that can distort results
• How to deal with inadequate models that do not add up and a dose of scepticism that should be applied when a third-party is involved in developing the information lenders review
• Suggestions on tools lenders can create and use to accelerate the development of deeper analysis of financial projections
• SBA’s view and policy on the importance of cash flow projections and the lender’s responsibility to analyze the applicant’s ability to repay the proposed financing

Who should Attend

• BDOs
• Loan Officers
• Credit Analysts
• Relationship Managers
• Loan Processors
• Loan Underwriters
• Senior Loan Officers (SLOs)
• Chief Credit Officers (CCOs)
• Loan committee members and other direct lending staff