- Do you find it difficult to quantify the actual credit needs of a client?
- Is it challenging for you to structure term loans with respect to tenor, value and equity participation?
- Don’t you feel it would be best to match exposures to clients based on their risk profile?
- Would you like assistance in structuring facilities to clients confidently and with ease?
If you’ve answered yes to any of the above, then you are certainly not alone. These are common challenges that many relationship managers face because they can’t identify how much clients actually need for their business. What you may not know is that facility structuring is quantifiable and can be calculated using formulae designed to take into consideration historical and future credit requirements for both direct and off-balance sheet (indirect) exposures, share of wallet, and numerous other relevant factors. Our methodology shows you, step by step, how to identify both the short-term and long-term credit needs of your client rather than the wants of your client. It also allows you to match a suitable exposure in line with client risk profiles. You will learn how to apply the structuring mechanisms that help achieve sound credit management practices that ensure coverage of main credit criteria in lending decisions.
The Facility Structuring E-Learning course covers the following curriculum:
- Risk and Capital
- Facility Structuring
- What do we normally finance?
- Limit Structuring
- Receivable Financing and Structuring
- FX Credit Limit Structuring
- Term Loans
- Pricing For Term Loans
- Term Lending Methodology
- Calculating Variables using DSCR
- Loan Agreements
- Term Sheet Items
- Modus Operandi in Case of Default
This module carries exercises related to each section, is valid for 3 months, and provides for a quiz at the end.
After completing this course, you can expect to:
- Identify obligor short term and long term credit needs
- Identify the extent of the exposure the bank should provide the client in line with the latter’s risk profile,
- Calculate the limits for both direct lending and contractual facilities (LCs, FX, etc)
- Calculate the most suitable equity the client needs to inject into long term financings
- Calculate the tenor of each financing
- Improve the standards in credit decision making
- Allow you to present your recommendations for facilities to clients in a clear and concise manner.
This program is for you if any of the following scenarios apply:
- You are a seasoned commercial/corporate relationship manager and want to learn how to calculate the credit needs of your clients confidently or you would like to learn how to limit your client’s exposure in line with the latter’s credit risk profile
- You are an SME Relationship Manager and you and want to learn how to calculate the credit needs of your clients confidently
- You are a new Relationship Manager and you want to learn all about facility structuring.
- You are a Risk Manager or Credit Auditor and want to better understand how facility structuring works and how exposure can be tied to the credit risk profile
- You are someone who has a general interest in credit risk and would like to learn how facility structuring is done.