Business loans are a vital source of funding for cash flow management. The course begins with ratio analysis and cash flow projections to determine whether loan funding is needed. I then explain how leverage (the use of borrowed funds) magnifies returns but increases risk.

We then explore key loan components like different ways interest is calculated, types of fees, and the multiple terms that can be structured into a loan. Basic accounting entries and financial statement presentation, including footnote disclosure, are explained.

You’ll discover ways to reduce the interest rate on your loan. I give an overview of the application process and the documents lenders frequently request.

The course explains the factors and ratios banks used to decide whether to approve a loan. Key documents that are signed at loan closing are described, and the importance of each is explained. I’ll point out important clauses included in these documents.

The author has 20 years of banking experience, including being CFO of two banks, sitting on loan committees, and having a collections department report to him. He provides insights into how banks operate, key terms borrower miss, and tips to protect you or your client’s business.

Course Key Concept: Business loans, loan documents, loan accounting, loan documents, loan terms, loan fees, working capital, cash flow projection

Note: This course is also available in Text-Based format.
https://www.illumeo.com/courses/business-loan-basics-text-based-course