Training on Bank-Business Relationships

Prerequisites

A general understanding of corporate finance and the ability to read financial statements are required.

Objectives

◗ Understand the mechanisms that influence banks' financing decisions.

◗ Identify the factors that determine risk analysis and credit terms.

◗ Assess the impact of guarantees, covenants, and financing structures on access to credit.

◗ Improve the quality of their interactions with financial partners.

◗ Put together a compelling funding proposal.

Training program

◗ Understand the bank's business model and its constraints

– The Fundamentals of the Banking Model
– Trade-offs Between Profitability, Risk, Liquidity, and Capital Consumption
– Impact of prudential regulations on lending activity
– Organization of sales and risk functions
– How credit delegations and committees operate
✔ UNDERSTAND | Illustration: How does a bank actually make money?
✔ APPLY | Case study: Identify the key players and decision-making steps in a financing application

◗ How the bank assesses risk

– Risk analysis criteria
• profitability, cash flow generation, and repayment capacity; the borrower’s financial structure, creditworthiness, and liquidity; governance, management, and ownership; resilience of the business model
– Components of the cost of credit: cost of refinancing, cost of risk, cost of capital, and liquidity premium
– Impact of credit quality on the terms obtained
✔ UNDERSTAND | Brainstorming: What are the main risk factors considered by a bank?
✔ APPLY | Guiding case study: Conduct a simplified credit analysis of a company
✔ APPLY | Practical case study: Compare several credit lines and identify their determining factors

◗ Structuring financing: tailoring the financing and the proposed/granted guarantees to the nature of the need and the borrower’s creditworthiness

– The Right Financing for Every Type of Need
• investment financing; working capital financing; real estate and asset financing; acquisition financing and project financing
– Guarantees, Collateral, and Covenants
• the role of guarantees in banking decisions; main types of collateral and guarantees; financial covenants and risk monitoring; best practices for negotiation
✔ UNDERSTAND | Illustration: How financing structure can influence the level of risk
✔ APPLY | Guiding case study: Developing a financing proposal tailored to an investment project
✔ APPLY | Practical case study: Analyzing the impact of different guarantees on banking risk

◗ Adjust your financing strategy

– From the “originate-to-hold” model to the “originate-to-distribute” model
– Syndicated loans and club deals
– Private debt and new players incorporate financing
– Risk distribution and structured financing
– Implications for companies’ financing strategies
✔ UNDERSTAND | Illustration: Overview of new players in corporate financing
✔ APPLY | Case study: Comparing multiple financing strategies for a single transaction
✔ EVALUATE | Quiz: Bank or private debt—which financier should you choose depending on the context?

◗ Build a relationship of trust and make a strong case for funding

– Expectations of Financial Partners
• Transparency and quality of financial information; operating and cash flow forecasts; development of a robust, scenario-based business plan; managing difficult periods; factors that foster a long-term relationship with lenders
– Building a Compelling Financing Proposal
• Presentation of the company and the project; market and strategy analysis; financial history and key indicators; financial forecasts and sensitivity analyses; desired financing structure; preparation for discussions with banks and investors
✔ UNDERSTAND | Summary sheet: Key expectations of a credit committee
✔ APPLY | Guiding case study: Preparing and presenting a financing proposal
✔ PRACTICE | Credit committee simulation: Pleading a financing request and responding to objections

Why choose this course?

Securing financing requires an understanding of how banks assess risk and set their lending terms.

This training helps executives, CFOs, financial managers, and treasurers structure their proposals, present a strong case, anticipate objections, and communicate more effectively with funders.

Teaching and assessment methods

Before the training: Submit your expectations via your online portal 15 days before the training begins and complete a self-assessment of your skills.

Teaching Methods: A variety of teaching methods to cater to different learning styles, encourage active participation, and reinforce learning through experimentation and practice.

Educational materials: presentation materials, reference materials (summary sheets, tables, etc.), and other resources available in your account.

During the training: theoretical concepts are alternated with examples drawn from real-life cases. Participants are given the opportunity to engage in role-playing exercises. Numerous practical exercises allow participants to demonstrate their mastery of the skills as the training progresses.

Training monitoring and evaluation: attendance sheet and certificate of completion. Immediate and post-training evaluations conducted using the LearnEval platform.

Price

1,860 EXCL.

Generalist trainings

Training on Bank-Business Relationships