Corporate Finance Institute – Fundamentals of Credit
Explore a day in the life of a lending professional to understand how credit really works!
- Understand what credit is and how it’s created
- Learn the fundamentals of credit structure and how to customize loans
- Explore key financial ratios and important frameworks like the 5 Cs and MAST
Credit plays an important role in the lives of many individuals; it’s also a key source of funding for businesses making capital expenditures (CAPEX). In this course, we discuss important lending topics like the difference between traditional loans and trade credit, different types of interest, different types of loans, where collateral security fits in, and how to build an amortization schedule for reducing term debt.
We cover an overview of the 5 Cs of Credit framework and how it may influence different loan characteristics before diving into some qualitative assessment tools and a list of the key financial ratios that an analyst would look at when evaluating a company’s creditworthiness. We also take a step back to look at the credit landscape to help learners understand what kinds of career opportunities exist for aspiring credit professionals.
This Fundamentals of Credit course is perfect for any aspiring or early-stage credit professionals, including business and commercial bankers, credit analysts, real estate lenders, equipment finance, loan & mortgage brokers, and other private (non-bank) lenders.
What You’ll Learn In Fundamentals of Credit?
- Define what credit is and how it’s created.
- Identify some of the different career opportunities available to credit professionals.
- Compare different types of interest payments and loan characteristics to help inform an appropriate credit structure.
- Explain what capital expenditure (or CAPEX) is and how debt financing can support it.
- Explain the 5 Cs of Credit framework and how it informs risk assessments.
- Identify the important qualitative and quantitative techniques, including key financial ratios used in the risk assessment process.
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