In this module participants will be introduced to the different types of loan structures which make up the profile of the liability side of a borrower’s balance sheet. Particular emphasis will be placed on how the financing needs arise for, how different structures are derived from, and how risks are managed in the following types of loans:
- Seasonal working capital loans
- Permanent working capital loans
- Medium and long-term loans
- Subordinated and shareholder loans
- Bridge loans and refinancing alternatives
Selecting the most appropriate type of loan directly linked to the financing needs and asset class of the client in question will also be extensively examined.
Finally, the module will focus on the role of loan covenants in helping support and reinforce the hallmarks of good loan and capital structure.
Using real life case examples, participants will review the fundamental disciplines of sound loan structuring, and in particular how the bank can design loan structures which safely identify and protect the primary and secondary sources of repayment of the loan.
The program will also show how the bank’s loan structuring solutions both meet the client’s immediate borrowing, liquidity, and long-term financial objectives while effectively managing the risk for the bank.