After a detailed credit analysis of a loan request has been performed, it's now time to communicate your findings in writing. Credit memoranda are a primary means of communication within the banking industry. When writing effective credit memoranda, it's not what you say that commands attention, but how you say it. Credit memoranda serve three functions: 1) they provide information on the condition and status of a customer relationship; 2) they provide a record of thoughts and actions; and 3) they support or recommend action.
This course teaches skills required to write an effective credit memorandum. Learn to emphasize important factors and trends without stating the obvious. In short, your credit memoranda should present relevant, material facts, along with your thoughts and opinions. Remember, anything you write in a credit memorandum will become public record if you find yourself in court with a borrower.
What You Will Learn
- Balance Sheet analysis
- Income Statement analysis
- Cash Flow analysis
- Calculating and interpreting financial ratios and cash flow
- Using analysis to determine the Financial Impact of changes in financial factors
- Questions to raise with the customer after the credit analysis is completed
- Outline of relevant factors to include in a credit memorandum
- How to report your finding efficiently and effectively in credit memoranda
- Apply the concepts to a study case
- Strengthen your understanding of credit analysis
- Clearly describe the Financial Impact of changes in financial factors, and not just report on what changed
- Interpret financial trends and financial ratios
- Write succinct and focused credit memoranda
- Meet with management armed with relevant questions and issues to be addressed
- Feel more confident in defending a recommended course of action based on relevant facts and not instinct
Faculty
Jeffery W. Johnson
Jeffery W. Johnson started his career with SunTrust Bank in Atlanta as a Management Trainee and progressed to Vice President and Senior Lender of SouthTrust Bank and Senior Vice President and Commercial Banking Division Manager for Citizens Trust Bank of Atlanta.
* Registration Plus Recording: Includes the live session (one connection, unlimited attendees), CD ROM, (shipped 7-10 business days after live session), unlimited access to OnDemand Playback and links to presenter materials and supplementary handouts for 6 months after live session.