This seminar covers common versions of global cash flow (GCF) analysis being used by bankers, with a focus on GCF as part of the underwriting process in most medium-to smaller-sized businesses and self-employed lending situations. We will explore the information and resources needed, plus key issues for extracting data from tax returns. One area of concern is the income listed on page two of Schedule E compared to withdrawals or contributions shown on the related K-1s. Another issue is how to adjust or reduce the personal cash flow for income taxes and living expenses. This leads to a discussion of the advantages and disadvantages of adjusting for income taxes and living expenses, versus adjusting the required coverage factor. We complete the GCF analysis discussion by reviewing an optional and simplified approach for integrating the cash flow effects of business balance sheet changes.
Topics to be covered in this course include:
Target Audience:
Branch managers, consumer lenders, mortgage bankers, private bankers, small business lenders, commercial lenders, credit analysts, loan review specialists, special assets officers, lending managers and credit officers.
