Cash Flow I: Assessing Cash Flow -Traditional, Global and UCA

Past Event

CASH FLOW I
Assessing Cash Flow -Traditional, Global and UCA

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

This course 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. 

PRESENTER: Brad Stevens is the principal at Stevens Risk Management, LLC. He is a recognized premier credit trainer nationwide serving the banking industry in all fifty states. Brad has been leading the credit industry as an analyst, commercial banker, Senior Credit Officer, nationwide trainer and consultant for over 35 years. During his banking career he worked with community banks, regional banks and a large national bank building strong credit portfolios at each stop he made. As a Senior Credit Officer his expertise was in turning around banks that had fallen into significant credit distress. He worked to turn around the banks by instilling a clear credit culture, strong credit policies, training programs as well as setting up a workout staff to manage the worst of the credits. He is a firm believer in making banking better and the training philosophy of Bankers Training Bankers.

Brad has an MBA in Finance from the University of St. Thomas and is a graduate of the Graduate School of Banking at the University of Wisconsin, Madison and a graduate of the Oklahoma Commercial Banking School. For more information visit Stevens Risk Management LLC contact Brad at Brad.Stevens@SRMALLC.net.

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

A minimum of six registered participants are required to host this course.

CERTIFICATE OF ACHIEVEMENT: Completion of two surveys is required to receive a certificate of completion for this course.  One will be handed out in person on the day of course, and the second one will be sent via Survey Monkey, approximately 30 days post-event.

QUESTIONS? Contact Brenda Ryan, RMA MN Chapter Chapter Administrator

Cancelation Policy

Cancellations (and no-shows) will not be refunded unless the instructor cancels the course.

If you are unable to attend, your registration fee will be applied to a future RMA-Minnesota/Local course (prior to 8/31/25), however you must notify the chapter administrator 4 business days prior to date of course. Substitution is allowed, however any difference in the applicable registration fee will be requested based on replacement’s current affiliation status.