In this webinar, you will learn:Upon completion of this webinar, the participant will know how to determine a borrower’s repayment ability from cash flow, collateral, and guarantors for repayment abilityGlobal Cash Flow Analysis Methodology utilizing financial statements, tax returns, and credit reports of commercial borrowers and individualsComparison of operating cash flow to the more inaccurate traditional cash flow (profits plus depreciation) and the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) method of determining cash flowA free cash flow method that can convert EBITDA into operating cash flowIncorporation of guarantors’ cash flow and resources into the global cash flowEvaluation of guarantor as a secondary repayment by adjusting the guarantor’s book net worthAssessment of collateral liquidation value as a secondary repayment sourceWho Should Attend Commercial BankersCommercial Real Estate LendersCredit AnalystsCredit Department StaffLoan UnderwritersLoan Review OfficersCredit Department ManagersSenior LendersChief Credit OfficersWhy Should You Attend Credit analysts, underwriters, and lenders are expected to assess a borrower’s ability to repay from its operating cash flow, collateral, and guarantors, but are they making that assessment accurately and consistently?Bankers hope that a borrower’s business generates enough cash flow to repay principal and interest, and the assets acquired with the borrowed funds are usually taken as collateral, e.g., inventory, equipment, real estate, etc. The owners of the business are also expected to guarantee the loan as additional support. Is there enough cash flow to repay, and if the borrower’s operations falter and the borrower defaults, is the collateral’s liquidation value and the guarantors’ adjusted net worth sufficient to pay off the loan?This session offers guidance on how to estimate a reliable operating cash flow, collateral liquidation value, and guarantor-adjusted net worth.Topic Background There is an old saying in credit analysis, “Borrowers pay back loans from cash flow, not profits.” But it is not just cash flow; it is cash flow from operations that is the most desirable source of repayment because it is generated by a borrower managing its working capital assets and earning a sustainable profit. This webinar will explain the difference between profits and cash flow, as well as cash flow from operations vs. cash flow from financing and investing activities. After all, borrowing from another lender or liquidating fixed assets to pay you back ultimately hurts the long-term viability of the borrower. However, lenders are cautious risk-takers, and so they routinely take collateral and require owners to guarantee, just in case cash flow fails.