All extensions of credit are based upon an understanding that cash will exist to repay the obligation. But, cash can come from two sources – cash flow from operations or the liquidation of an asset. When lenders believe that the risk of repayment from cash flow is too high relative to the anticipated return, the assignment of collateral can often be used to make the risk/reward equation acceptable. And, there are many cases where credit can be extended solely on the value of the collateral. But just as the lender against cash flow must understand all of the factors than impact future cash flow, the lender against an asset must fully understand the factors that will affect the value and marketability of that asset.

This tutorial describes how loans can be structured with terms and conditions, covenants, and collateral in order to reduce the risk of default. It also looks at the role of collateral in the subprime lending crisis.

Objectives

Program Content

Target Audience

Prerequisites

Registration Information

This short online course can be purchased individually or as part of the following discount scheme(s).

• Credit Risk Analysis

Once purchased, you will have access to this course for 365 Days.

Cost:

40.00

UK£ EUR US$   excluding including VAT*

Related CPD Courses

• Cash Flow Forecasting
• Credit Analysis - An Introduction
• Debt Capacity and Cash Flow Analysis
• Financial Analysis - An Introduction
• Managing Credit Risk
• Principles of Credit Extension
• Risk And Credit Structure

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