Gain an understanding of the most used financial covenants, their purpose and when and how they are tested and calculated.
This topic will begin with an overview of financial covenants including what a 'covenant' is and why banks and other institutions utilize covenants.
Learning Objectives:
- Review financial covenants including what is a covenant and why are they used
- Explore the common types of financial covenants including the Current Ratio, Debt to Equity Ratio and EBITDA formulas
- Evaluate additional financial covenants including those dealing with Times Interest Earned (TIE), Net Worth, and the BBC
- Discuss creating, negotiating, setting, and monitoring financial covenants
- Cover the institution's recourse when a covenant has been broken
- Utilize case studies to summarize the webinar ideas
Why Should You Attend:
This webinar will begin with an overview of financial covenants including what is a "covenant" and why banks and other institutions utilize covenants.
The session will then review "common types" of financial covenants including the Current Ratio (liquidity), Debt to Equity Ratio (leverage), and EBITDA (cash flow) calculations. We will also discuss additional financial covenants including Times Interest Earned (TIE), Net Worth (including tangible net worth), and the Borrowing Base Certificate (BBC).
The training session will also cover drafting or creating financial covenants and negotiating, setting, and monitoring the covenants. The session will then explore the breaching of financial covenants and the institution's recourse when a covenant has been exceeded. Case studies will be used to illustrate the webinar concepts.
The session will then review "common types" of financial covenants including the Current Ratio (liquidity), Debt to Equity Ratio (leverage), and EBITDA (cash flow) calculations. We will also discuss additional financial covenants including Times Interest Earned (TIE), Net Worth (including tangible net worth), and the Borrowing Base Certificate (BBC).
The training session will also cover drafting or creating financial covenants and negotiating, setting, and monitoring the covenants. The session will then explore the breaching of financial covenants and the institution's recourse when a covenant has been exceeded. Case studies will be used to illustrate the webinar concepts.
Instructor
David L. Osburn is the founder of Osburn & Associates, LLC, a Business Training and Contract CFO Firm that provides seminars, webinars, and keynote speeches forCPAs, bankers, attorneys, credit managers, and business owners on topics such asBanking/Finance/Credit, Negotiation Skills, Marketing,and Management Issues.
Mr. Osburn’sContract 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 includes 17 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 bankingcredentials include loan underwriting, loan "work-out", management, and business development.
Mr. Osburn has been an adjunct college professor for over 30 years including Nevada State College and 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).