Sales and underwriting for small businesses are separate functions at many banks. Yet most of the credit training for business bankers resembles underwriting courses, rather than providing bankers with an understanding of the financial problems they need to solve for clients in order to get their business.

Credit Essentials is a one-day class designed to teach small-business sales officers the essential elements of credit, without the depth of knowledge required by underwriters. It enables them to communicate with clients in language the client understands, and recommend solutions to common problems business owners face. Topics covered include:

Accounting Fundamentals

• Understanding how the balance sheet and income statement relate to one another
• Identifying and understanding key information on a tax return and other statement formats
• Performing a “quick cash flow” calculation to get a better understanding of a company's ability to repay debts

The 3 R's of Credit

• Navigating the credit maze by answering four key questions
• Matching client needs to appropriate financing options
• Evaluating needs for short and long-term working capital and fixed asset purchases
• Understanding the impact of timing gaps, cash traps, growth saps, and the associated credit needs
• Analyzing repayment potential in three quick steps
• Evaluating secondary repayment sources using a three-step review
• Communicating the need for guarantors and personal guarantees

Rapport and Relationships

• Summarizing key client, request repayment and recourse information
• Maintaining positive relationships with clients, underwriters, and loan personnel
• Communicating loan decisions, conditions and counteroffers

Legal Organization

• Understanding the types of legal ownership
• Identifying how the type of ownership affects the 3 R's of Credit

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