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Financial Management

Applying for Business Finance

Canons of Lending, Repayment Capacity, and Business Plan Preparation

2 CPD credits on completion
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Certificate on completion
Downloadable resources
Self-paced learning

About This Course

Course Information

The learning outcomes from this CPD management skills course include: Preparing a funding proposal Assessing the affordability Understanding conditions and covenants Importance of style and layout

Certificate on Completion

This course is made up of videos, questions and additional reading materials, and accounts for 2 units of CPD. One unit is the equivalent of one hour of learning.

Course Sections

This course is made up of the following sections:

  • Canons of lending (video)
  • Canons of lending (quiz)
  • Preparing the funding proposal (video)
  • Preparing the funding proposal (quiz)

What You Will Learn

  • Describe the seven canons of lending that banks use to assess finance proposals: borrower, purpose, amount, repayment capacity, security, expediency, and remuneration
  • Explain how to assess borrower suitability, including legal persona, track record, and existing banking relationships
  • Compare three methods banks use to measure repayment capacity: EBIT, EBITDA, and free cash flow
  • Identify common loan conditions and covenants, distinguishing between conditions precedent and ongoing requirements
  • Apply the loan-to-value ratio and explain how security requirements relate to other elements of the credit assessment
  • Prepare and structure a business plan for presentation to a commercial lender on behalf of a client

Who This Course Is For

  • Accountants who advise clients on obtaining bank finance or preparing loan applications
  • Finance professionals who need to understand how commercial lenders evaluate credit proposals
  • Small business owners or advisors preparing business plans for submission to banks

Prerequisites

  • A basic understanding of financial statements, including profit and loss accounts and balance sheets
  • No prior experience with lending or banking credit processes is required

Frequently Asked Questions

Course Details

CPD Credits2
CertificateYes

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Everything included in your subscription:

CPD certificate on completion
Downloadable resources
Self-paced learning
Expert-led content
24/7 access
Mobile friendly

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