Understanding Cash Flow, Global, Traditional and UCA (Part 1)

Past Event

This is the first of three 2 hour sessions: 
October 26, 27 and 28 (Mon. - Wed.)  |   9 - 11am

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Understanding Cash Flow, Traditional and UCA

Understanding Cash Flow, Global, Traditional and UCA focuses on the analysis of the borrower’s cash flow by comparing the core cash flow analysis tools. The goal is to understand the mechanics as well as the key analysis required to make the most of the information the financial statements provide. The course begins with understanding what is causing a borrower’s cash shortfall. By understanding why the borrower is short of funds, the banker is directed to the correct analysis for meeting the borrower’s need.

The course will include a global cash flow model encompassing the personal financial statement, taxes as well as the income statement and balance sheet to fully assess all the cash flow sources that are available. Traditional cash flow options are presented as ways to do a quick analysis, however their shortfalls are clearly presented. Most importantly, the UCA or “Bankers Cash Flow” is detailed through the relationships it presents as well as building a UCA Cash Statement from given information. Building upon the analysis the banker will be able to develop the right questions for the borrower as to the “why” behind the numbers that the borrower has presented to the banker for the credit request. By using the analysis tools presented correctly, a determination can be made about the creditworthiness of the borrower and the pitfalls that may exist that will jeopardize the repayment.

Course Goal: To prepare attendees to accurately assess the borrower to provide an increased probability of successful repayment as well as a satisfied client.

Recommended for Credit Analysts, Underwriters and Commercial Bankers of all levels

In this course, we will cover:

• Introduction to the Core Cash Drivers, applying them to the borrower to determine where the cash shortfall is arising
• Understanding the linkage between the income statement & balance sheet, and how it impacts the cash level of the borrower
• Assessment of the various traditional cash flow models, including EBITA, True Traditional, FASB 95
• Building a UCA Cash Flow and understanding what the analysis is telling you

Required Items: Pen/Pencil and Calculator. Quiet environment.

A minimum of 6 participants is required to hold this course.

Note: An affiliate of the Minnesota Chapter is an individual who has paid the 2020/2021 local chapter fee for the Risk Management Association. Please Note: National Membership does not qualify for affiliate benefits at MN Chapter events.

INSTRUCTOR: Brad Stevens is the founder of Stevens Risk Management, LLC which specializes in credit training and consulting for both the finance and manufacturing industry. He has over 30 years of experience in banking ranging from building strong credit portfolios as a banker, leading both lending and credit departments, as well as navigating banks through tough credit times. Brad brings a unique hands on experience to his training sharing real world examples that resonate with those in attendance at presentations.

CERTIFICATE OF ACHIEVEMENT REQUIREMENTS:

• Must attend (via Zoom) all three 2hr sessions: October 26, 27 and 28 (Mon. - Wed.)  |   9 - 11am
• Complete 2 surveys; 1 first survey will be sent immediately after the last webinar session and the 2^nd survey will be sent 30 days after completion.

QUESTIONS? Contact Brenda Ryan, Chapter Administrator at info@rma-mn.org

Cancelation Policy

Cancellations will be not be refunded unless the instructor cancels the course.  If participant is unable to attend, the registration fee can be applied to a future RMA-MN local course.  Substitutions are allowed as long as the chapter administrator is notified 24 hours prior to the course, however any difference in the applicable registration fee will be requested.