Introduction to Credit Analysis

• Risk assessment
• Principles of good lending
• Content of the annual report and accounts
• Analysis of non-financial information

Basic Accounting Concepts

• Fundamental accounting principles and concepts
• Understanding the concept of dual effect
• Construction of a balance sheet
• A review of the items on the balance sheet and their accounting treatment, e.g. tangible fixed assets and depreciation, intangible fixed assets and amortisation, investments, provisions, finance and operating leases, ordinary and preference share capital and treasury shares
• A review of the profit and loss account

Financial Analysis

• Spreading the accounts
• Ratio analysis - an examination of the company's profitability, liquidity, financial risk and efficiency
• The business cycle and how it is financed

Cash Flow Analysis

• Sources and uses of cash for a business
• Constructing a cash flow statement
• Interpreting a cash flow statement
• Cash flow ratios and how to interpret them
• Understanding free cash flow and debt capacity
• Cash budgets and their uses

The Banking Environment

• General principles of security
• Review of assets commonly offered as collateral: Fixed and floating charges, land and property and shares
• Guarantees, indemnities and letters of comfort
• Credit products and their uses
• Credit review formats