The critical risks of lending to a small business are not always obvious from the financials and credit application. Underwriters have stated that bankers often don't supply them with enough information to make good credit decisions. They complain they have to rely on the financial data alone because information that could be gained from complete interviews is not included in the credit package.
IDENTIFYING CREDIT RISK is ideal for bankers who interview small businesses for credit. Using real-world case studies, bankers receive an enhanced understanding of how to identify potential risks through interviewing and analysis, and how to concisely communicate what they’ve found to underwriters.
This two-day course builds on a banker's existing knowledge of small business credit and bank products. In day one, bankers learn to ask the right questions during the initial client interview, and to quickly review financial statements and tax returns to recognize potential risks before submitting a package to underwriting. The instructor role-plays a business owner to imitate real-world interviewing and follow-up sessions.
In day two, bankers evaluate guarantor risks by focusing on the aspects of guarantor finances that impact a small business’ credit strength. They then practice prioritizing potential risks, so only those 3 to 6 that would not be obvious from the financial data are communicated to underwriters.
In the afternoon of day two, a practical application workshop gives bankers a hands-on opportunity to apply the skills and tools provided earlier. The workshop cements the skills to professionally obtain and communicate all the information an underwriter needs to make an informed credit decision. The end result is that bankers increase their credibility with clients and underwriters, and underwriters make better-informed credit decisions quickly.
