Writing Effective Credit Memos

Past Event

Writing Effective Credit Memos: If you cannot say it succinctly and get to the point, you either do not understand it or do not believe in it! This is crucial in presenting your credit approval write ups. Your audience needs to know what the key risk factors are the most influential and impactful to your specific client. Unfocused volumes of words will not benefit you or your audience.

The starting point must be explaining the source and reason for the cash shortfall that has occurred within your client’s business. The next step is drilling down i the financial statements to determine the magnitude, duration as well as the frequency of the cash shortfall. Developing a targeted analysis around the specific risk impacts affecting your client will allow you to efficiently pinpoint the select areas to discuss as well as provide for the correct structure to assure repayment of the credit to be provided the client.

By understanding the industry your client is in, the impact of the marketplace on the business, management’s ability, the expectations that exist for how the business should look, assessing the current condition of the firm as well as narrowing down the primary risks associated with the specific business are required to correctly assess any credit request.

This course uses realistic case studies to drill down into the core cash drivers, assess cash flow models, detail what the financial ratios in your spreads are telling you to focus on the key risk areas that need attention. While there are many numbers, the goal here is to focus on the few events that lead to the right decision and structure that will assist you in making your credit write ups more effective. This will assist your audience, the credit committee and others who approve your credit requests to fully understand the risk of the client without having to wade through a text book sized write up.

Please note: There will be light presession homework prior to the class presentation.

Recommended for Credit Analysts, Underwriters and Commercial Bankers of all levels
This is a foundation course being offered by RMA-MN that sets the stage for further learning.

This course will cover the following:

• Use of various cases studies to reflect different risk and analysis.
• Setting general expectations on manufacturing, wholesale/distribution, retail and service industry clients on how the financials should look and what to expect.
• Financial statement analysis of key information, setting expectations for the core cash drivers, cash to cash cycle, cash cycle, UCA Cash Flow, ratios and the impact each will have on the credit risk of the borrower.
• Drilling down to the core important ratios and information that detail the specific risks to highlight• Writing concise credit presentations that focus on the core credit risk associated with the specific borrower, industry, type of loan structure, management and marketplace impact.
• Monitoring existing borrowers for early warning signs of trouble or areas of opportunities to expand the relationship.

ITEMS TO BRING: Pencils and Calculator. 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)
(Please Note: The registration fee for this event includes a 5% processing fee.)

• $315.00 - Minnesota Chapter Affiliate Rate
• $393.75 - Non-Affiliate Rate

An Affiliate of the Minnesota Chapter is an individual who has paid the local chapter fee for the 2022/2023 term
(9/1/22 - 8/31/23). National Membership does not qualify for affiliate benefits at MN Chapter events.

If you are unsure of your affiliation status with the MN Chapter, contact the Chapter Administrator.

Special Offer: The RMA Minnesota Chapter will extend the affiliate rate to firms that register five or more non-affiliates to attend this course.  Please contact the Chapter Administrator to set up.

A minimum of 6 participants is required in order 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 8/31/23) – 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.