Time: 10:00 AM - 11:00 AM (PT)
Duration: 60 Minutes
Webinar Type: Recorded Webinar
Speaker: Dev Strischek
Date : Monday, July 29
Course Description:
The Five Cs of Commercial Credit is a framework used by lenders to assess the creditworthiness of businesses. By understanding the Five Cs of Commercial Credit, bankers can assess the risk associated with lending to a particular borrower and make informed lending decisions. This helps banks to manage their risk exposure and ensure that they are lending responsibly.
Moreover, by evaluating each of the Five Cs, bankers can provide valuable advice to borrowers on how to improve their creditworthiness. This can help borrowers to secure financing in the future and build a strong financial foundation for their business.
Bankers have relied on the 5 C’s of credit - capacity, conditions, collateral, capital, and character for many years, but what do these terms really mean, and how do lenders use them to determine whether a potential borrower is creditworthy?
This simple credit model is simple to understand and easy to use. The speaker explains how lenders assess each of these factors and provides practical tips for borrowers to improve their creditworthiness. Attend the session to see the big picture for credit analysis and underwriting.
Learning objective :
The first four C’s - capacity, conditions, collateral, and character- evaluate a borrower’s ability to repay, but character forces the lender to examine closely the borrower’s willingness to repay.
Learn how to employ the first four C’s to analyze repayment ability.
Learn how to use the fifth C- character - to judge a borrower’s willingness to repay.
Area Covered In The Webinar:
Introduction to the Five Cs of Commercial Credit
Explanation of each of the Five Cs: Character, Capacity, Capital, Collateral, and Conditions
Capacity measured by the ability to repay from cash flow
Conditions evaluated in terms of how borrowing needs change over the business cycle and what makes some industries more vulnerable to downturns than others
Collateral analysis in terms of relative liquidation values
Capacity considered in terms of the borrower’s equity cushion and the degree of relative
leverage possible
Character assessed in terms of willingness to repay as evidenced by payment history as well as tips for fraud prevention.
Why Should You Attend:
The webinar will provide valuable insights into the lending process and learn how to navigate the credit landscape effectively. The webinar is also an excellent resource for anyone looking to secure financing for their business.
Who Will Benefit:
Small business owners
Credit analysts
Loan underwriters, Loan review officers
Commercial bankers, Credit department managers
Senior lenders, Chief credit officers, Credit analysts
Credit managers, Credit risk managers
Risk managers, Enterprise risk managers
Chief credit officers, Senior lending officer
Bank director, Chief executive officer
President, Board chairman
Financial professionals, such as accountants, bookkeepers, and financial advisors.
Entrepreneurs who are starting a new business and need financing.
Instructor Profile:
Dev Strischek, a frequent speaker, instructor, advisor and writer on credit risk and commercial banking topics and issues, Dev is principal of Devon Risk Advisory Group and engages in consulting, speaking and training on a wide range of risk, credit, and lending topics. As former SVP and senior credit policy officer at SunTrust Bank, Atlanta, he was responsible for developing, implementing, and administering credit policies for SunTrust's wholesale lines of business--commercial, commercial real estate, corporate investment banking, capital markets, business banking and private wealth management. He also spent three years as managing director and credit approver in SunTrust's Florida commercial lending and corporate investment banking areas, respectively. Prior to SunTrust, Dev was chief credit officer for Barnett Bank's Palm Beach market. Besides stints at other banks in Florida, Kansas City, and Ohio, Dev's experiences outside of banking include CFO of a Honolulu construction company, combat engineer officer in the U.S. Army, and college economics instructor in Hawaii, Missouri, and Florida. A graduate of Ohio State University and the ABA Stonier Graduate School of Banking, he earned his M.B.A. from the University of Hawaii.
Dev serves as an instructor in the Stonier Graduate School of Banking and the American Bankers Association's (ABA) Commercial Lending. His school, conference, and workshop audiences have included participants drawn from the ABA, RMA, OCC, Federal Reserve, FDIC, FFIEC, SBA, the Institute of Management Accountants (IMA) and the AICPA. Dev has written about credit risk management, financial analysis and related subjects for the Risk Management Association's RMA Journal, and other business professional journals. He is the author of Analyzing Construction Contractors and its related RMA workshop. A past national chair of RMA and former Florida Chapter president, Dev served as a member of the RMA Journal's advisory board, and he has consulted on credit risk issues with banks in Morocco, Egypt, and Angola through the US State Department's Financial Service Volunteer Corps (FSVC). He also served on the Private Company Council (PCC) of the Financial Accounting Standards Board (FASB); the PCC reviews current and proposed generally accepted principles (GAAP) and recommends revisions that simplify their use for privately held organizations.
