Cash to Cash and Cash Cycle, Assessing Management's Effectiveness and Getting to the Right Line of Credit Amount

Operating lines of credit are never easy to analyze. Rarely are any two assessments the same. The key to setting the right line of credit is analyzing the borrower’s cash-to-cash cycle. Learn how to assess management’s stewardship of their cash, build expectations for industry standards, and develop a usable assessment to arrive at the right line of credit amount for your borrower. Explore operating entities in manufacturing, wholesale/distribution, retail, and service sector industries. Since managing credit risk does not end at the closing, participants will be given key monitoring points that help keep the life of the loan in good standing.

Learning Objectives:

• Learn how to assess management’s stewardship of cash.
• Build expectations for industry standards in inventory control and receivable collections.
• Develop a usable asset management to arrive at the right line of credit amount.
• Define key monitoring points to avoid issues for you and the borrower through the life of the loan.

Duration: 60-minutes