Course Overview:
Effective underwriting is critical to a business’s success, requiring both financial expertise and strategic risk assessment. This course offers a deeper exploration of the credit underwriting process, equipping delegates with advanced skills to analyse key financial statements – Profit and Loss Account, Balance Sheet, and Cash Flow Statement – and assess both financial and non-financial risks.
This online training course, delivered over four mornings, will equip delegates with the tools to construct persuasive credit proposals, apply advanced ratio analysis, and identify early warning signals of corporate distress. By mastering these techniques, you’ll enhance decision-making, improve service levels, and drive sales opportunities with confidence.
Financial statements in depth
Review Profit & Loss Accounts and Balance Sheets with a focus on trends, sustainability of profit and serviceability of new debt.
Examine Balance Sheet structure, including assets, liabilities and capital, and identify pressure points such as high gearing or weak reserves.
Use audited Cash Flow Statements to judge the quality of cash generation rather than relying only on reported profit.
Ratios, working capital and cash
Apply key ratios from the course worksheet, including liquidity, profitability and leverage measures, to highlight strengths and weaknesses.
Assess working capital management by looking at stock, debtors and creditors and the impact on day to day cash.
Use EBITDA and coverage ratios to test whether proposed borrowing is affordable over the life of the facility.
Looking beyond the numbers
Question accounting policies, audit qualifications and notes to the accounts to understand how far reported results can be relied on.
Use the CAMPARI framework to organise financial and non financial risk factors, including management quality, market position and external pressures.
Practise targeted questioning to fill gaps in the information and test the plausibility of forecasts and business plans.
Credit reports and case decisions
Structure clear and concise credit proposals that set out the background, analysis, risks and mitigating factors.
Match the style of report to the audience and focus on the points that drive the credit decision.
Work through full case study proposals, decide whether to agree, agree subject to conditions, defer or decline, and present your reasoning to the group.
In this session delegates will:
- Deepen their understanding of financial statements and key ratios.
- Assess the impact of working capital, liquidity, and debt structures on business performance.
- Identify risks from non-financial factors such as management and competition.
- Develop skills to identify early signs of corporate collapse.
- Construct compelling credit proposals with a balanced view of risks and mitigants.
- Apply these skills through case study lending proposals.
- This course is ideal for professionals with a basic understanding of credit skills, looking to expand their expertise in business lending. Typical attendees include:
- Sales executives and account managers
- Credit and risk managers
- Collections and recoveries personnel
- Asset management and administration staff
Paul Collis
Paul has a proven track record in key financial disciplines, gaining expertise through key roles in various asset finance companies, during his 36 years in the financial services sector. Paul’s first position was with Barclays Mercantile in the mid-1980s, providing him with exposure to corporate financial sales. During the recession of the early 1990s, he worked closely with SMEs to help turn their fortunes around, which required critical people management skills. Paul has also held senior risk management positions with organisations such as Tokyo Leasing UK Ltd, De Lage Landen Leasing Ltd, First National Motor Finance Ltd, and Hitachi Capital Business Finance Ltd.
Bespoke In-house Training
If you would like to run this course for your own organisation, the FLA can deliver Intermediate Underwriting Skills as a tailored in-house workshop for your team. Whether you want to build core knowledge in a specific department or support a wider training programme, the content can be shaped around your objectives and internal policies.
To make an enquiry, simply complete the in-house training form on the FLA website and the training team will contact you to discuss options and next steps.
