We will review how underwriting integrates the analytical traditions of financial analysis, management assessment, and business environment into an appropriate credit recommendation. We will also outline the critical risks and how those risks are mitigated.What You'll Learn:

• Describe macroeconomic factors that affect a business and its ability to repay a loan.
  
• Evaluate business, industry, and management risk elements and their effect on loan repayment.
  
• Analyze key ratios including liquidity, leverage, asset management, profitability, and coverage ratios.
  
• Evaluate sources and uses of cash on the financial statements.
  
• Understand the history of the cash flow statement and how it is used in credit analysis.
  
• Describe the difference between operating, investing, and financing cash flows.
  
• Identify primary and secondary sources of repayment.
  
• Evaluate the risks associated with lines of credit, term loans, bridge loans, and permanent working capital loans.
  
• Understand affirmative and negative covenants.