Credit Reasoning and Writing Course

Why select this training course?

Credit in any financial institution is a critical aspect of success. Creating credit approval documents that give a rich overall credit scenario and the level of risk exposure to an institution is one of the essential skills needed in the financial industry. Most institutions are recognising the need to have a credit reasoning and writing professional who will fill the gap in the qualification of their staff. Credit professionals find it difficult to handle the job of credit reasoning and writing as it is overwhelming and involves lengthy credit approval documentation that is possibly 50 pages and contains huge volumes of data. There is a need for specialised professionals who can handle credit approval documentation in expert ways using modern tools and techniques.

What are credit reasoning and writing?

Credit reasoning and writing refers to evaluating and documenting a borrower’s creditworthiness to make informed lending decisions. This involves collecting and analysing financial and non-financial information about a borrower, including their credit history, financial statements, and other relevant information, to determine their ability to repay a loan.

What are the different steps involved in credit reasoning and writing?

The credit reasoning and writing process typically includes the following steps:

• Collecting and analysing financial and non-financial information about a borrower to determine their creditworthiness.
• Evaluating the borrower’s ability to pay back the loan
• Using financial ratios and other tools to analyse the borrower’s financial position and determine their ability to repay the loan
• Making a recommendation on whether to approve or deny the loan based on the results of the credit analysis and risk assessment
• Documenting the credit reasoning and writing process and the results of the credit analysis and recommendation

The Credit Reasoning and Writing Course by Rcademy will give participants the required edge to be the trusted professionals undertaking these important duties. It will give them the required skills to write and develop clear, consistent, concise, and complete credit approval documentation focused on cash flow. It will also enable them to write professional financial risk analysis reports based on facts. All these benefits will give them a chance to improve their careers and a stand to assume higher responsibilities of credit reasoning and writing.

This Rcademy course will enable participants to conveniently work in financial institutions as experts and trusted professionals handling some of the following:

• Communicating and articulating the levels of risk proposition to enable the bank and any other financial institution to make its decision to approve or reject a loan application.
• Give a clear and concise credit recommendation based on a great credit analysis that will reduce bad credit and ensure the lending institution gains or catches all the opportunities.
• Analyse, compile, and document financial findings to direct the lending institution’s future decisions.
• Give a professional opinion on the risk exposure of any bank.

Who should attend?

The Credit Reasoning and Writing Course by Rcademy is ideal for the following professionals:

• Credit analyst
• Credit personnel that wants to sharpen their credit reasoning and writing skills
• Risk manager
• Relationship managers
• Credit analysis hiring manager to understand the requirements
• Senior bank managers

What are the course objectives?

The Credit Reasoning and Writing Course by Rcademy have the aim to enable participants to:

• Understand how to write credit approval-reject documents
• Discover various ways to analyse credit risk exposure
• Learn how to communicate effectively without bias
• Learn how to describe key facility risks and understand how they can be mitigated
• Understand how to practically use the knowledge learnt in giving senior managers advice
• Select information for inclusion in credit approval documents that will be relevant and informative to the decision-maker and enable them to focus on key risks
• Communicate consistently and completely while focusing on the cash flow
• Produce high-quality executive summaries to communicate the key issues to their managers to make better decisions
• Understand the fundamental building blocks of credit reasoning and writing
• Understand how to formulate various tools and methods to use in credit scenario analysis

How will this course be presented?

This course will be facilitated by the industry’s best professionals who haveexperience both in their field of dominance and teach using the following methods:

• Class presentation
• Illustrations
• Examples
• Discussions
• Practice sessions

What are the topics covered in this course?

Module 1: Business Risks Summarisation Methods

• Qualitative methods in understanding business risks
• Various business analysis techniques and how they are part of the official credit application document
• Methods used in credit reasoning
• Modern ways of analysing credit risks
• Structuring the analysis and preparing a proper report
• Case study

Module 2: The Required Qualities of a Good Credit Approval Article 

• Passive and active methods of writing
• How to avoid using ambiguous and vague concepts in your paper
• The critical advantages of simple and effective sentence structures
• Using information to your advantage
• The four golden rules and the 5C’s of a credit approval-reject document
• The main purpose of using figures, tables, graphs, and numbers

Module 3: Transactions and Structure Risks Summarisation

• Mitigating the risk by using a loan structure
• Debrief of the case study given for the evening work
• Transaction that may be carrying specific risks
• Understanding the importance of structural risk documentation
• The main types of subordination
• Borrowing causes and loan structure
• Case study

Module 4: The Qualities a Good Credit Approval-Reject Should Have 

• A good writing style
• The work of visual effects
• Using the actual voice of the borrower
• Using practical work aides
• Understanding tool book
• Avoiding unnecessary information
• Writing techniques that will improve the quality

Module 5: The Recommendation

• The main “rules”
• How to write a great executive summary
• Writing a compelling recommendation
• Linking recommendation to good credit qualities
• Using an unstructured approach to cover three components of credit risk-business risk
• Understanding how to deal with risks
• Case study and practical example

Module 6: Executive Summary

• Analysing your competition
• Giving a better financial overview
• Understanding how to describe your target market
• Funding needed
• Describing your approval or cause of the problem
• Evidence coverage
• Financial stability description
• Creating an exit strategy
• Avoiding the cliché

Module 7: Financial Risks Summarisation

• Writing opinions and judgment and how to effectively support facts
• Key drivers of cash flow and how to capture them effectively
• Avoiding the elevator analysis
• The four pillars of good credit writing and financial analysis
• Understanding financial ratios deeply
• Financial ratios exercise
• Case study

Module 8: Putting It All Together

• Grasping the summarisation skills
• The main objectives and scope of a good credit submission
• The credit facility
• Content of credit submission
• The concluding skills
• The credit submission summary