Asset-Based Lending & Alternative Finance

Asset-based Lending & Alternative Finance course overview

This Asset-Based Lending & Alternative Finance course dives into lending solutions for borrowers that don’t fit the target profile of a more traditional senior lender, like a commercial bank. Despite falling short of these requirements, many companies are still attractive borrowing prospects for alternative finance firms. This course shows you how lenders assess these unique opportunities and how they structure non-standard credit by leveraging balance sheet assets as collateral to support riskier borrowers. We will also examine the differences between these solutions and more traditional forms of commercial financing.

The lending solutions we will be looking at in this course are: purchase order financing (PO financing), accounts receivable factoring (A/R factoring), asset-based lending lines (ABL lines), and sale-and-leasebacks.

Asset-based Lending & Alternative Finance course learning objectives

Upon completing this course, you will be able to:

• Compare different types of alternative lending structures, including purchase order financing, accounts receivable factoring, Asset-based lending (ABL) lines, and sale-and-leaseback transactions.
• Identify the differences and similarities between asset-based lending solutions and more traditional forms of commercial financing – like operating lines of credit.
• Analyze the underlying causes of weak or deteriorating risk ratings and identify when a good lending opportunity may still exist.
• Calculate credit needs for various borrowing scenarios.
• Recommend the most appropriate lending solution based on important client characteristics like business type, lifecycle, and capital structure.

Asset-based Lending & Alternative Finance  is an elective course of CFI’s CBCA® program

CFI’s Commercial Banking & Credit Analyst (CBCA)™ Program offers skills including credit evaluation, documentation, and review procedures. From beginners to advanced users, the CBCA® program is designed to help you become a world-class commercial banker or credit analyst.

Who should take this CBCA® course?

This Asset-Based Lending & Alternative Finance course is suited for current and aspiring commercial lending professionals and credit analysts. Commercial bankers and analysts can work for many different types of financial institutions and it is important to understand the tools available for any type of lender to provide value to their borrowers. This course will prepare you with the knowledge you need to identify and apply these alternative financing tools and strategies.