Key Benefits
- Apply credit assessment, cash flow analysis, and structuring techniques to match client borrowing needs with appropriate loan facilities
- Strengthen your ability to structure transactions and use loan covenants effectively to manage and mitigate credit risk
- Improve your understanding of loan and transaction structuring to support better decision making in your work
Do You Need to Attend This Course?
This Loan & Transaction Structuring Masterclass is a ‘must know’ for:
Senior and top managers seeking to gain a better understanding of their responsibilities in this area
Credit, Compliance & Risk Officers who are charged with overseeing and managing credit risk
Department Heads, Team Leaders and Supervisors
Client Relationship Teams
Internal Audit staff responsible for reviewing credit exposures
Delegates seeking a better understanding of the attractions of loan structuring and how it might improve credit risk
Anyone involved or with an interest in credit risk and loan and transaction structuring seeking either a refresher or wishing to acquire new skills
Technical Content
Part One Session 1: Introduction to Credit Risk
What is credit risk?
The different types of credit risk Sovereign
Corporate
Retail
Systemic
Counterparty
The current credit and lending environment
Risk appetite statements and their impact on credit and lending strategy
Risk appetite statements and their impact on credit strategy
The three methods of calculating credit risk, standardised, foundation and advanced IRB
Revised Standardised Approaches deferred until 01.01.2027
Why do we structure deals?
The impact of IFRS 9
Case study / Example to illustrate the above
Session 2: Lending Refresher – overview
Definitions & basic lending principles
Lending policies, lending strategies, lending systems
Data/information collection
Approvals, security, drawdowns
Management & monitoring systems
Case study / Exercise: Several of each throughout the session
Session 3: The Working Capital / Cash Conversion Cycle
How do we define working capital/cash conversion cycle
Structuring loans against a repayment source
Very important in trade finance and receivables finance
Understanding the mechanics
Seasonal or non-recurring cycles
The role of bank loans
The role of the overdraft
Understanding break-even analysis
Understanding bankers' cash flows
How to lend to support the cycle
When an overdraft becomes a medium-term loan by default
Managing multiple cycles
Case study / Example to illustrate the above
Session 4: The Basic Principles of Lending
Appraisal techniques
Credit assessment
Business clients
Corporate Clients
Private Wealth Clients
Trade Finance
Group credit appraisal
Development finance
Project finance
Case study / Example to illustrate the above
Part Two Session 5: Structuring by establishing the borrower's actual needs
Why structure? What is the benefit
Examples of loan structuring
The lending safety versus commercial attraction credit risk dilemma
Short, medium and long-term loans funding needs
Short, medium and long-term lending products
SWOT analysis
Basic principles
Data collection, refining and perfection
Evaluation – back testing
Selecting the appropriate lending mix in practice
What goes wrong?
Case study / Exercise: Several of each throughout the session
Session 6: The different lending maturities & structures
Examining the risks for different loan structuring maturities
Short-term finance
Medium-term finance
Long-term finance
Working capital finance
Trade finance
Project finance
The risks
Best practice
What goes wrong? How do we spot this soon enough?
Case study / Example to illustrate the above
Session 7: Lending structures
Structured Finance
Different types and maturities
Innovations Borrowing base
Asset-backed lending
Repos
Reverse factoring
UPAS
Project finance
Receivables and invoice financing
Non-recourse deals
Matching lending to cash flow
Matching lending to the use of funds
Management and monitoring systems
Case study / Example to illustrate the above
Session 8: Security & Documentation
Security does not improve the repayment source which is always the underlying deal
Risk transfer
The importance of guarantees
Type of security
What documentation do we need?
Best practice
Covenants
Undertakings
Key clauses
Managing the loan structuring and pricing
Regular scrutiny
What goes wrong?
Case study / Example to illustrate the above
Session 9: Following Our Money
Why is this necessary?
How do we do it?
The role of the CRM
The role of Credit & Risk Management
Systems, Processes
Best practice
What goes wrong?
Case study / Example to illustrate the above
Session 10: Course conclusion
Summary
Course win up
Open forum
Training Objectives
Identify the key elements of credit risk
Understand the working capital cycle of a business loan structure
Measure, quantify and evaluate the actual borrowing needs of the client (lend them what they need as opposed to what they want or think they need).
Assess the risk of transactional lending the client what they need
Understand the difference between short, medium- and long-term loans and the risk profiles
Analyse the cash flows – the source of our repayment over the length of the loan payment structure
Select the most appropriate lending structure
Decide whether security is required
Select appropriate documentation and loan covenants to manage the bank loan transaction
Learn how the ongoing management of the bank loan structure is vital
Be clear that the practice of “following the bank’s money” must always be implemented
Training Course Summary
A one-day interactive workshop-style Loan & Transaction Structuring course, aimed at mid-level corporate bankers, analysts, product and client servicing and support teams wanting to gain an understanding of how credit assessment, loan transaction structuring, cash flow analysis, mortgage banking training, structuring in banking, transaction financing, structuring mortgage loans, commercial loan structure, structuring financial transactions, corporate loan structuring, and loan covenants can be used effectively to ensure client borrowing needs are matched and serviced by the appropriate bank facility.
Participants are not expected to be lending experts but a basic understanding of bank lending products and experience with some lending exposures would be helpful.
Your trainer
Course Trainer · 40 yrs experience
- Banking Training Courses
The Loan & Transaction Structuring Masterclass trainer had a highly successful, long and varied “fast track” career in Lloyds Bank which led him to a very senior management position in the bank’s private Commercial Banking and then the Corporate Banking Divisions. He was then “head hunted” to join a merchant bank at the main board director level to oversee the private banking and wealth management offering to the group’s major and prestigious clients. He now has over 40 years of experience in the UK banking and financial services sector.
He has been a freelance risk management training consultant since retiring and is currently an external Master Trainer at both HSBC and Bank of China where he has delivered major risk projects. He is an accomplished global trainer and has delivered extensive programmes in the UK, USA, South America, Europe, Africa, Asia and the Middle East.
He is a highly adaptive, hands-on and highly sought-after facilitator who always receives excellent feedback from delegates. He is comfortable training at any level of seniority and experience, from “black belts” to novices. His expertise includes but is not limited to Risk Management, Trade Finance, Regulatory Compliance, FCC & AML and all aspects of Private & Retail Banking. He is also a highly experienced soft skills trainer and has completed numerous “train the trainer” assignments.
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