This course will provide the CPA with a brief overview of Commercial and Industrial (C&I) loan products including working capital lines of credit, ABL facilities, and equipment financing (loans/leases) and their typical structure.
The session will also cover how banks underwrite C&I loans including accounts receivable assessment, the use of a “Borrowing Base Certificate,” the valuation and quality of inventory, and equipment issues in lending. This portion of the webinar will also cover the proper evaluation of the borrower’s financial statements.
Additionally, the session will cover documentation of C&I loans, collateral concerns, challenges with pricing, and how a bank manages the C&I loan portfolio. The course will conclude with a review of how a CPA should negotiate new C&I loans for the clients in today’s competitive market.
Publication Date: December 2019
Designed For
CPAs, CFO/controllers, financial managers, auditors, financial analysts and practitioners who provide accounting, tax or consulting services to businesses.
Topics Covered
- Brief overview of Commercial and Industrial (C&I) loan products
- Commercial & Industrial (C&I) Loan Products & Structure
- Underwriting C&I Loans
- Accounts Receivable & Inventory Assessment and the Borrowing Base Certificate (BBC)
- Accounts Receivable Issues
- Valuation and Quality of Inventory (including Inventory Costing System)
- Equipment Issues in Lending (including Depreciation)
Learning Objectives
- Describe C&I lending
- Identify C&I loan products and their typical structure
- Recognize how banks underwrite C&I loans including accounts receivable, inventory, and equipment financing
- Evaluate the borrower's financial statements
- Identify the documentation, collateral, pricing, and management of C&I loans
- Recognize how to negotiate C&I loans in today's market
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Finance (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
David Osburn
David L. Osburn is the founder of Osburn & Associates, LLC, a Business Training and Contract CFO Firm that provides seminars, webinars, and keynote speeches for bankers, CPAs, credit managers, attorneys, and business owners on topics such as Banking/Finance/Credit, Negotiation Skills, Marketing, and Management Issues.
Mr. Osburn’s Contract CFO clients include medical practitioners, financial institutions, law firms, CPA firms, architects, real estate developers, and contractors.
His extensive professional background of over 30 years encompasses 21 years as a Business Trainer/ Contract CFO and 16 years as a bank commercial lender including the position of Vice President/Senior Banking Officer. His banking credentials include loan underwriting, loan “work-out”, management, and business development.
Mr. Osburn has been an adjunct college professor for over 30 years including the College of Southern Nevada.
He holds an MBA from Utah State University, a BS in Finance from Brigham Young University, and is a graduate of the ABA National Commercial Lending School held at the University of Oklahoma.
Additionally, Mr. Osburn holds the professional designation of Certified Credit & Risk Analyst (CCRA) as granted by the National Association of Credit Management (NACM).