Lesson 1Bank vs non-bank lending tradeoffs: underwriting rigor, documentation, approval speed, an' flexibilityCompare banks an' non-bank lenders across underwriting rigor, documentation, pricing, approval speed, an' flexibility, so yuh can guide clients toward de right fit fi their needs an' risk tolerance wid smart choices.
Documentation depth an' verificationCredit box strictness an' exceptionsApproval speed an' funding timelinesPricing, fees, an' relationship valueFlexibility in structure an' covenantsLesson 2How to present loan options to business owners in plain language an' explain risks an' costsDevelop skills to explain loan structures, costs, an' risks in plain language, using comparisons, visuals, an' disclosures dat help owners understand tradeoffs an' make informed, confident decisions fi success.
Translating jargon into plain languageExplaining APR, fees, an' total costDescribing prepayment an' penaltiesClarifying personal risk an' guaranteesUsing comparisons an' simple visualsLesson 3Structuring working capital solutions: term length, amortization, interest-only periods, balloon payments an' covenant examplesLearn how to design working capital structures, including term length, amortization, interest-only periods, balloons, an' covenants, aligning repayment wid cash cycles while protecting lender an' borrower interests.
Matching term to cash conversion cycleAmortization schedules an' optionsInterest-only an' step-up structuresBalloon payments an' refinance riskCommon financial an' reporting covenantsLesson 4SBA loan programs: eligibility, application process, guarantee structure, approval timelines an' pros/consUnderstand major SBA loan programs, including 7(a) an' 504, eligibility rules, guarantees, fees, timelines, an' pros an' cons, so yuh can identify when SBA is de best path fi yuh small business clients.
Overview of main SBA programsEligibility rules an' ineligible usesGuarantee structure an' lender riskApplication steps an' timelinesPros, cons, an' common pitfallsLesson 5Common small business loan types: term loans, lines of credit, SBA 7(a)/504, merchant cash advances, invoice financing, an' online short-term loansReview de main small business loan types, from term loans an' lines of credit to SBA, merchant cash advances, invoice financing, an' online short-term loans, an' match each to typical needs an' risk levels.
Term loans an' equipment financingRevolving lines of credit basicsSBA 7(a) an' 504 loan use casesMerchant cash advances explainedInvoice an' receivables financingOnline short-term working capitalLesson 6Online an' alternative lenders: speed, typical rates, fees, an' typical borrower profiles servedExplore how online an' alternative lenders operate, including speed of funding, pricing structures, fees, risk appetite, an' de borrower profiles they target, so yuh can position these options responsibly fi clients.
Funding speed an' application workflowsTypical APR ranges, fees, an' add-onsRisk models an' data sources usedIdeal borrower profiles an' use casesRed flags an' predatory structuresLesson 7Personal vs business credit: when personal guarantees are required an' implicationsClarify de differences between personal an' business credit, when personal guarantees are required, how they are evaluated, an' de legal, financial, an' relationship implications fi owners an' co-signers.
Business credit reports an' scoresPersonal credit factors lenders reviewWhen guarantees are typically requiredGuarantee structures an' carve-outsImpacts of default on guarantorsLesson 8Typical underwriting criteria fi business loans: time-in-business, revenue, cash flow, debt service coverage ratio (DSCR) an' collateralExamine core underwriting criteria fi business loans, including time in business, revenue, cash flow, DSCR, collateral, an' industry risk, an' learn how lenders weigh strengths an' weaknesses in decisions.
Time-in-business an' stability testsRevenue size, trends, an' seasonalityCash flow coverage an' DSCR testsCollateral valuation an' lien positionIndustry, management, an' characterLesson 9Risk pricing an' interest-rate drivers fi small business loans (credit risk, term, collateral, industry)Understand how lenders price small business credit, including how risk ratings, term, collateral, industry, an' market conditions drive interest rates, fees, an' covenants across different loan products fi fair deals.
Risk ratings an' pricing gridsTerm length an' yield expectationsCollateral quality an' loan-to-valueIndustry risk an' cyclicality impactMarket benchmarks an' competitionLesson 10Assessing business financial statements: profit & loss, balance sheet, cash flow statements an' key ratios to evaluate repayment abilityLearn how to read profit an' loss, balance sheet, an' cash flow statements, calculate key ratios, an' interpret trends to judge repayment capacity an' identify issues before submitting a loan package.
Reading de profit an' loss statementKey balance sheet items fi lendersCash flow statement an' add-backsCore ratios: DSCR, leverage, liquidityTrend analysis an' normalization
