Business Lending Certification Institute: Fundamentals Topics

Mark Taber

Introduction to Business Lending

  •  Understand why Member Business Services are an advantage to both your members and credit union
  • Learn the story of Member Business Lending through analysis of historical and recent trends
  • Identify both what has worked  for credit unions and what has been commonly overlooked when adding Member Business Services to the line-up
  • Explore a case study to review the steps needed to effectively set-up a Member Business Services program
  • Identify industry resources to lean on for expertise

 Understanding Business Basics

  •  Discover how businesses are organized
  • Review the key drivers of the different business types
  • Recognize what are the needs of businesses
  • Find out what business owners want from you

  What Do You Need to Get Started

  •  Learn what an approval process might look likes
  • Identify if you have the policies, process and procedures in place for business loans
  • Develop your strategy and plan

 The Basics of Credit

  •  Discover what’s needed to underwrite a loan and review the purpose of the application process
  • Identify potential collateral
  • Learn the Importance of proper Risk Rating

 Building and Managing a Business Portfolio

  •  Discover methods of tracking and monitoring relationships
  • Learn why diversification is critical
  • Understand how to manage your portfolio

 Lender Roundtable

  •  Listen to the experts talk about their programs
  • Learn how others succeeded and how to avoid failing

 Business Lending Regulations

  • Learn what regulations impact you
  • Discover how an examiner will review your portfolio and program
  • Understand why it’s important to stay within the rules

 Services Beyond Loans

  •  Learn what business are looking for from their financial institution
  • Discover what other products and services you can offer
  • Understand how to build a long lasting relationship 

The Art of Business Development

  •  Learn the basics of a sale process
  • Discover how to prospect for good opportunities
  • Use basic negotiation skills
  • Understand how to establish credibility early in the sales process 

Joe Hyatt

MBL Underwriting Purpose & Components

  •  Discuss why loans are underwritten
  • Identify different types of business entities and how underwriting is affected by entity type
  • Discover the 5 C’s of Credit

 The Loan Package

  •  Review what is included in a loan package checklist
  • Learn why your credit union needs what is requested in a loan package

 Financial Statements

  • Explore Financial Statement types and level of reliability
  • Introduction to the composition of a balance sheet and income statement
  • Learn the key components of a Personal Financial Statement
  • Review the use of K-1 Statements and other supporting schedules and documentation

Key Ratio Analysis

  • Learn to identify components and uses for repayment capacity ratios
  • Study and calculate key capital capacity ratios

 Collateral Analysis

  • Review the various forms of collateral
  • Discuss the different ways that collateral may be valued
  • Discover appraisal methodologies employed for commercial real estate valuation

 Character and Conditions

  • Review and discuss subjective and objective borrower character traits
  • Explore how a business owner’s success may be impacted by external forces

 Constructing a Credit Presentation

  • Identify how MBL analysis performed is formatted to tell a story about the borrower

 Making the Loan Decision

  • Learn how the MBL Committee utilizes the credit presentation to formulate its opinion
  • Participate in a loan committee setting

 MBL’s After Origination

  • Discern what servicing an MBL requires
  • Discuss the different paths taken when good loans go bad


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