Lesson 1Bank vs non-bank lending compromises: approval strictness, proof, approval pace, and adaptabilityCompare banks and non-bank lenders on approval strictness, proof, pricing, approval pace, and adaptability, so you can direct clients to the best match for their needs and risk level.
Proof depth and confirmationCredit criteria strictness and exemptionsApproval pace and funding schedulesPricing, charges, and relationship worthAdaptability in setup and conditionsLesson 2How to present loan choices to business owners in simple terms and explain risks and expensesBuild skills to describe loan setups, expenses, and risks in simple terms, using contrasts, diagrams, and notices that aid owners in grasping compromises and deciding confidently.
Turning jargon into simple languageExplaining APR, charges, and total expenseDescribing early repayment and finesClarifying personal risk and suretiesUsing contrasts and basic diagramsLesson 3Arranging working capital solutions: duration, repayment, interest-only phases, balloon payments and condition examplesLearn to craft working capital setups, including duration, repayment, interest-only phases, balloons, and conditions, matching repayment to cash flows while safeguarding lender and borrower.
Matching duration to cash cycleRepayment schedules and choicesInterest-only and step-up setupsBalloon payments and refinancing riskCommon financial and reporting conditionsLesson 4SBA loan schemes: eligibility, application steps, guarantee setup, approval schedules and pros/consGrasp major SBA loan schemes, including 7(a) and 504, eligibility norms, guarantees, charges, schedules, and pros/cons, so you can spot when SBA suits your small business clients best.
Summary of main SBA schemesEligibility norms and unsuitable usesGuarantee setup and lender riskApplication steps and schedulesPros, cons, and usual pitfallsLesson 5Common small business loan varieties: term loans, credit lines, SBA 7(a)/504, merchant cash advances, invoice funding, and online short-term loansReview primary small business loan varieties, from term loans and credit lines to SBA, merchant cash advances, invoice funding, and online short-term loans, and pair each to typical needs and risk levels.
Term loans and equipment fundingRevolving credit line basicsSBA 7(a) and 504 loan applicationsMerchant cash advances outlinedInvoice and receivables fundingOnline short-term working capitalLesson 6Online and alternative lenders: pace, usual rates, charges, and typical borrower types servedExplore how online and alternative lenders work, including funding pace, pricing setups, charges, risk tolerance, and borrower types they target, so you can suggest these choices responsibly for clients.
Funding pace and application flowsTypical APR ranges, charges, and extrasRisk models and data originsIdeal borrower types and applicationsWarning signs and exploitative setupsLesson 7Personal vs business credit: when personal sureties are needed and effectsClarify differences between personal and business credit, when personal sureties are required, how they are assessed, and the legal, financial, and relationship effects for owners and co-signers.
Business credit reports and scoresPersonal credit elements lenders checkWhen sureties are usually requiredSurety setups and exclusionsEffects of default on suretiesLesson 8Usual approval standards for business loans: time in business, turnover, cash flow, debt service coverage ratio (DSCR) and securityExamine core approval standards for business loans, including time in business, turnover, cash flow, DSCR, security, and sector risk, and learn how lenders balance strengths and weaknesses in choices.
Time-in-business and stability checksTurnover size, trends, and seasonal effectsCash flow coverage and DSCR checksSecurity valuation and lien statusSector, management, and integrityLesson 9Risk pricing and interest-rate factors for small business loans (credit risk, duration, security, sector)Understand how lenders price small business credit, including how risk ratings, duration, security, sector, and market conditions drive interest rates, charges, and conditions across loan products.
Risk ratings and pricing tablesDuration length and yield aimsSecurity quality and loan-to-valueSector risk and cycle effectsMarket standards and rivalryLesson 10Assessing business financial reports: profit & loss, balance sheet, cash flow reports and key ratios to judge repayment capacityLearn to read profit and loss, balance sheet, and cash flow reports, compute key ratios, and interpret trends to assess repayment ability and spot issues before lodging a loan package.
Reading the profit and loss reportKey balance sheet items for lendersCash flow report and adjustmentsCore ratios: DSCR, leverage, liquidityTrend review and adjustment
