Writing an Effective Credit Memorandum-It’s not What You Say But How You Say It
Credit memoranda serve as the primary means of communication in the banking domain. It covers three functions: providing details on customer relation status, record actions, and thoughts, and recommend or support action. An effective memorandum is not about what you say, but how you say it, for commanding attention.Join industry expert Dev Strischek as he helps you develop your skills in writing an effective credit memorandum that places emphasis on the relevant factors without the need to state the obvious. Strengthen your understanding of the credit analysis and clearly describe the financial impact of changes in financial factors, reporting more than just what has changed.Analyzing a borrower’s ability to repay means incorporating financial analysis and non-financial information into a concise, valid explanation and estimation of a borrower’s creditworthiness in terms of cash flow, collateral, and guarantees.Areas Covered Financial performance—income statement analysis: profitability and productivityFinancial condition—balance sheet analysis: liquidity, leverage, and solvencyCash flow and repayment abilityOutlining the relevant factors which should be included in credit memorandum—repayment ability from cash flow, collateral, and guaranteesWriting an effective credit memorandumApply the concepts to a case studyWho Should Attend Commercial Loan OfficersConsumer Loan OfficersCredit AnalystsLoan Review PersonnelCompliance OfficersInternal AuditorsBranch ManagersThe participant should have some experience or prior classwork in analyzing financial statements and/or credit analysisHuman Resource DirectorsCredit Risk ManagersReal Estate ManagersRisk Management OfficersAdministrative AssistantsSVP Regional Loan OfficersSVP Retail Credit ManagersLending Analytics ManagersBank OfficersWhy Should You Attend What you need to analyze is a borrower’s ability to repay based on the borrower’s financial and non-financial track record. What you need to explain concisely and factually is how you have evaluated the borrower’s creditworthiness. This session will provide you guidance and tips on how to accomplish this task.
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Credit memoranda serve as the primary means of communication in the banking domain. It covers three functions: providing details on customer relation status, record actions, and thoughts, and recommend or support action. An effective memorandum is not about what you say, but how you say it, for commanding attention.
Join industry expert Dev Strischek as he helps you develop your skills in writing an effective credit memorandum that places emphasis on the relevant factors without the need to state the obvious. Strengthen your understanding of the credit analysis and clearly describe the financial impact of changes in financial factors, reporting more than just what has changed.
Analyzing a borrower’s ability to repay means incorporating financial analysis and non-financial information into a concise, valid explanation and estimation of a borrower’s creditworthiness in terms of cash flow, collateral, and guarantees.
Areas Covered
- Financial performance—income statement analysis: profitability and productivity
- Financial condition—balance sheet analysis: liquidity, leverage, and solvency
- Cash flow and repayment ability
- Outlining the relevant factors which should be included in credit memorandum—repayment ability from cash flow, collateral, and guarantees
- Writing an effective credit memorandum
- Apply the concepts to a case study
Who Should Attend
- Commercial Loan Officers
- Consumer Loan Officers
- Credit Analysts
- Loan Review Personnel
- Compliance Officers
- Internal Auditors
- Branch Managers
- The participant should have some experience or prior classwork in analyzing financial statements and/or credit analysis
- Human Resource Directors
- Credit Risk Managers
- Real Estate Managers
- Risk Management Officers
- Administrative Assistants
- SVP Regional Loan Officers
- SVP Retail Credit Managers
- Lending Analytics Managers
- Bank Officers
Why Should You Attend
What you need to analyze is a borrower’s ability to repay based on the borrower’s financial and non-financial track record. What you need to explain concisely and factually is how you have evaluated the borrower’s creditworthiness. This session will provide you guidance and tips on how to accomplish this task.
