Foundations for Credit Analysis: Understanding and Analysing Financial Statements

BPP Professional Education
Course summary
Professional Training
30 hours
3,140 GBP excl. VAT
London, Online courses
Course Dates
Online courses
3,140 GBP
Online delivery option may be available - Please contact provider.

Course description

Foundations for Credit Analysis: Understanding and Analysing Financial Statements

This five-day course aims to give a sound grounding in credit analysis. No prior knowledge of credit analysis is assumed. By the end of the course, you will be able to write and support a credit review for a small- to medium-sized company. Please note, after attending Corporate Credit Analysis - Level 1, we recommend you leave an interval of at least 3 months before attending Corporate Credit Analysis - Level 2. This will give you valuable time to put into practice all the skills you learned at Level 1.

Suitability - Who should attend?

This course will be of benefit to those who have little experience of accounting or financial analysis, or the principles of successful lending. It is particularly appropriate for those starting or about to start in a credit analysis role in a bank, or any role requiring corporate financial analysis.

Outcome / Qualification etc.

Learning outcomes include obtaining a greater understanding of:

  • Introduction to credit analysis
    • Risk assessment
    • Principles of good lending
    • Content of the annual report and accounts
    • Analysis of non-financial information
  • Basic accounting concepts
    • Fundamental accounting principles and concepts
    • Understanding the concept of dual effect
    • Construction of a balance sheet
    • A review of the items on the balance sheet and their accounting treatment, e.g. tangible fixed assets and depreciation, intangible assets and amortisation, investments, provisions, finance and operating leases, ordinary and preference share capital and treasury shares
  • A review of the income statement
  • Financial analysis
  • Spreading the accounts
  • Ratio analysis - an examination of the company's profitability, liquidity, financial risk and efficiency
  • The business cycle and how it is financed
  • Cash flow analysis
    • Sources and uses of cash for a business
    • Constructing a cash flow statement
    • Interpreting a cash flow statement
    • Cash flow ratios and how to interpret them
    • Understanding free cash flow and debt capacity
    • Cash budgets and their uses
  • The banking environment
    • General principles of security
    • Review of assets commonly offered as collateral
    • Fixed and floating charges
    • Guarantees, indemnities and letters of comfort
    • Credit products and their uses
    • Credit review formats

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BPP Professional Education -  Accountancy, Tax, Financial Services, Law & Insolvency Courses

BPP Professional Education is one of the specialist examination-based and professional development training arm of the BPP Group, Europe's biggest professional education and publishing provider with 2,000 staff members across 40 countries and over 30,000 students per year. BPP Professional Education...

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BPP Professional Education

3 London Wall Buildings
EC2M 5PD London

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