Cash Flow I

Past Event

ASSESSING CASH FLOW - TRADITIONAL, GLOBAL AND UCA

This is a foundational cash flow class offered by RMA-MN that sets the stage for continued learning. We highly recommend Credit Analysts, Underwriters and Commercial Bankers of all levels take this course.

Cash Flow I 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 linkages required to make the most of the information the financial statements provide. The course starts by recognizing that all loan requests start with our borrower having a cash shortfall. understanding what is causing a borrower’s cash shortfall.

As bankers, we need to solve our client’s problem by uncovering the true source of the cash shortfall. Once the cash shortfall is discovered, we need to determine the capacity of the self-liquidating asset to recover the funds to repay the loan. Our assessment then becomes targeted to the source of repayment, the self-liquidating asset. This course digs deep into the relationships between the personal financial statement, income statement, balance sheet, statement of cash flows and taxes to take a global assessment of how our borrower will repay the debt they are requesting. By understanding why the borrower is short of funds, the banker is directed to the correct analysis for meeting the borrower’s need. It also provides 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, but it is hardly a reliable assessment of the true amount of cash available to repay the financing. This course goes much deeper, looking into the global view of the borrower as well as fully presenting the UCA Cash Flow 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 providing a thorough look at where all the cash in the business is being used or sourced. 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.

The goal of this course is to prepare the attendees to accurately assess the borrower to provide an increased probability of successful repayment as well as a satisfied client.

THIS COURSE 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 and 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 and UCA Cash Flow
• Introduction to sensitivity analysis to determine where the cash is and how much might be sourced from the cash drivers of the firm.

ITEMS TO BRING: Pen/Pencil, calculator and a fully charged laptop (Outlet may not be available).

PRESENTER: 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.

REGISTRATION FEE: (includes Jimmy Johns boxed lunch and bottled water)
(Registration fee for this event includes a 5% processing fee.)

• $315 - Minnesota Chapter Affiliate Rate
• $395 - Non-Affiliate Rate

An Affiliate of the Minnesota Chapter is an individual who has paid the local chapter fee for the 2023/2024 term (9/1/23 - 8/31/24). National Membership does not qualify for affiliate benefits at MN Chapter events.

Not an affiliate? Click HERE for information and application for Chapter Affiliation.
If you are unsure of your affiliation status with the MN Chapter, contact the Chapter Administrator.

A minimum of 6 participants is required in order to host this course.

CERTIFICATE OF ACHIEVEMENT: Survey participation is required to receive a certificate of completion for this course. Please take the time to complete two short surveys; one will be sent immediately after, and a second survey will be sent 30 days post-event.

Cancelation Policy

Cancellations (and no-shows) will 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-Minnesota/Local course (prior to 8/31/24) – must notify the chapter administrator notice 4 business days prior to course date. Substitution is allowed, however any difference in the applicable registration fee will be requested based on replacement’s current affiliation status.