Included courses

Credit Analysis for Lenders

5 STARS

Star Rating
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About

Build a comprehensive understanding of the credit process undertaken by the lenders of a loan. Examine the different risks involved against the loan, the tools used to mitigate these risks, and how to analyze a borrower’s ability to meet future obligations. The knowledge and skills developed can be applied directly to any credit analyst role.

Completion time

4 Hours

Level

Skills Certificate

About

Build a comprehensive understanding of the credit process undertaken by the lenders of a loan. Examine the different risks involved against the loan, the tools used to mitigate these risks, and how to analyze a borrower’s ability to meet future obligations. The knowledge and skills developed can be applied directly to any credit analyst role.

Completion time

4 Hours

Level

Skills Certificate

Module

Video Minutes

Excel Exercises

Credit Risk

17

0

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Video minutes17

Excel Exercises0

  • How banks make money
  • The credit perspective
  • How bad loans affect banks
  • Intro to the credit process
  • The 5 Cs of credit
  • Quantifying credit risk
  • Default risk
  • Loss given default risk

Controlling Credit Risk

39

3

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Video minutes39

Excel Exercises3

  • The components of the credit memo
  • Determining the risk in lending for various purposes
  • Using pricing and fees to mitigate risk and drive the bank’s return
  • The role of covenants in monitoring the loan
  • How banks minimize risk by selling off pieces of the loan
  • Using seniority, security, collateral and guarantees to protect the loan
  • How banks minimize risk by selling off pieces of the loan

Business Credit Risk

10

0

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Video minutes10

Excel Exercises0

  • Understanding business risk (macro, industry, and company)
  • A closer look at company risk
  • Management risk
  • Estimating business risk

Financial Risk

48

4

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Video minutes48

Excel Exercises4

  • Determining on and off-balance sheet obligations
  • Assessing the quality and efficiency of a company’s assets
  • How to calculate EBIT and EBITDA for credit analysis
  • How OWC can impact a company’s cash flow
  • Assessing cash flow adequacy
  • Measuring a companies ability to withstand fluctuations
  • Liquidity definition and calculations

Debt Capacity

36

6

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Video minutes36

Excel Exercises6

  • Determining how much room a company has to borrow additional funds
  • Analyzing a company’s cash flow to determine borrowing capacity
  • Using base case, upside, and downside scenarios to determine debt capacity
  • Using cash flow analysis to determine the timings of a loan repayment
  • Extending debt capacity using cash flows from later years in the forecast
  • Modeling credit scenarios

Frequently Asked Questions

What tech do I need?

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Access your course across desktop, laptop, tablet or phone; either via our web portal or the dedicated mobile app. While we have optimized our video quality and size, we recommend a broadband connection to enable uninterrupted video playback. A PDF reader and spreadsheet application are required to open the supporting resources.

Is it right for me?

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This is an essential course for anyone interested in credit analysis. You will learn how to review the lending processes and master the analytical skills that every credit analyst needs to know. Perfect for graduates looking to bridge the gap between academia and industry, or professionals preparing for a new role. Before undertaking this course, we recommend having an understanding of financial accounting fundamentals available via The Accountant.

Are Financial Edge's courses credible?

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The 4 leading investment banks, as rated by the FT, hire us to train their incoming analysts. If you are looking to join the best analysts in the world, why not challenge yourself with the same content and certification with the same Wall Street instructors ready to answer your questions.

Will this course help me get a job in credit analysis?

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Absolutely. Develop practical skills you can use to impress at interviews, whether you’re looking to break into credit analysis or other finance roles.

How long do I have to complete the courses?

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We are delighted to announce that we now offer lifetime access on all online courses! Fit studying around your schedule. Learn at your own pace with on-demand video, practical examples to download and expert instructor support.

Are there any hidden costs?

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No. Everything you need to earn your skill certificate is included, from instructor-led videos and Excel exercises to the exam.

How do I join Financial Edge's alumni?

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Join our world-class alumni on LinkedIn by upgrading your skill certification to any one of our micro-degree’s. To unlock all alumni benefits, you will need to verify you have successfully passed all courses within the online program.

Want to Join Our Prestigious Alumni?

JOIN THE BEST

By completing any one of our micro-degree’s, you will be able to join our prestigious alumni on LinkedIn alongside hires at the top 4 investment banks. After becoming a member of this elite community, you can unlock exclusive benefits such as course discounts and more.

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