Back Up Your Cash Flow with Secondary Repayment Sources - Collateral and Guarantees

Duration

60  Mins

Level

Basic & Intermediate & Advanced

Webinar ID

IQW21E0533

  • Identification of possible collateral assets
  • Description of collateral valuation factors—liquidity, marketability, security options, and typical LTV’s
  • Evaluation of guarantor financial statements to determine adjusted net worth, value of guarantor’s assets outside of the borrowing entity

Overview of the webinar

  • Not all assets are created equal at liquidation because they differ in degree of liquidity, marketability, and security, and we differentiate these inequalities by setting loan-to-value ratios and their potential losses given default 
  • Bankers want a borrowing entity’s principals to guarantee credit extended to the entity, but some guarantors have deeper pockets than others, and we sum up the size of their deep pockets by determining their relative adjust net worths
  • Sizing up the secondary sources of repayment give lenders a viable Plan B if Plan’s A cash flow fails to perform

Who should attend?

  • Credit Analysts
  • Credit Managers
  • Loan review officers
  • Work-out officers
  • Commercial lenders
  • Credit Risk Managers
  • Chief Credit Officers
  • Senior Lenders
  • Senior Lending Officer
  • Bank Director
  • Chief Executive Officer
  • President
  • Board Chairman

Why should you attend?

We know we cannot liquidate collateral and call on the guarantors until the borrower has defaulted, and that default puts an extra burden on the Plan B sources because their value is unlikely to be the same as they were at the inception of the loan. This session aims at providing practical guidance to evaluation collateral and guarantees as back-up repayment sources.

Faculty - Mr.Dev Strischek

A frequent speaker, instructor, advisor and writer on credit risk and commercial banking topics and issues, Martin J. "Dev" Strischek is principal of Devon Risk Advisory Group based near Atlanta, Georgia.  Dev advises, trains, and develops for financial organizations risk management solutions and recommendations on a range of issues and topics, e.g., credit risk management, credit culture, credit policy, credit and lending training, etc. Dev is also a member of the Financial Accounting Standards Board’s (FASB’s) Private Company Council (PCC).  PCC’s purpose is to evaluate and recommend to FASB revisions to current and proposed generally accepted accounting principles (GAAP) that are more appropriate for privately held firms.  He also serves as the PCC’s representative to FASB’s Credit Losses Transition Resource Group supporting the new current expected credit loss (CECL) standard. Dev is the 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.

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