Fundamentals of Credit course overview
Credit plays an important role in the lives of many
individuals; it’s also a key source of funding for businesses making capital expenditures (CAPEX). In this course we discuss important lending topics like the difference between traditional loans and trade credit, different types of interest, different types of loans, where collateral security fits in, and how to build an amortization schedule for reducing term debt. We cover an overview of the 5 Cs of Credit
framework and how it may influence different loan characteristics, before diving into some qualitative assessment tools and a list of the key financial ratios that an analyst would look at when evaluating a company’s creditworthiness. We also take a step back to look at the credit landscape in order to help learners understand what kinds of career opportunities exist for aspiring credit professionals.
Fundamentals of Credit learning objectives
Upon completing this course, you will be able to:
- Define what credit is and how it’s created.
- Identify some of the different career opportunities available to credit professionals.
- Compare different types of interest payments and loan characteristics to help inform an appropriate credit structure.
- Explain what capital expenditure (or, CAPEX) is and how debt financing can support it.
- Explain the 5 Cs of Credit framework and how it informs risk assessments.
- Identify the important qualitative and quantitative techniques, including key financial ratios used in the risk assessment process.
Fundamentals of Credit is a prep course of CFI’s CBCA® program
CFI’s Commercial Banking & Credit Analyst (CBCA)™ Program offers skills including credit structuring, 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 Fundamentals of Credit course is perfect for any aspiring or early-stage credit professionals, including business and commercial bankers, credit analysts, real estate lenders, equipment finance, loan & mortgage brokers, and other private (non-bank) lenders.