What are Credit Training Courses?
Credit training courses are offered to students and credit professionals to equip them with the required knowledge on consumer and commercial lending. The training introduces participants to a variety of credit subjects, such as financial ratios, credit risk analysis, evaluation metrics, and financial statement analysis.
The courses are offered on a variety of platforms, including self-study, online classes, seminars, as well as traditional institutions. Students can also choose to pursue credit training as part of a short online course or regular diploma or degree course.
- Credit training courses equip learners with core skills and knowledge on commercial lending, consumer lending, and small business lending.
- The courses are designed for students seeking a career in credit management, as well as entry-level lenders and underwriters working in the credit department of a financial institution.
- Learners can choose to pursue a credit training course through an online classroom, traditional institution, seminars, or self-study.
Credit Training Courses Learning Options
1. Online classroom
Students and credit professionals seeking to undertake a credit training course can choose among several options, including online classroom, traditional institutions, seminars, or self-study. Online classrooms are more popular among credit professionals looking for greater flexibility and the ability to study at their own pace.
Also, online classrooms are favorably-priced compared to the tuition fee that students would ordinarily pay in traditional learning institutions. Most online courses provide interactive learning materials, such as on-demand videos, downloadable resources, live streams, online exams, etc., and students receive a certificate of completion at the end of the course.
2. Traditional institutions, seminars, and self-study
The other alternative is to enroll in traditional formal institutions. Traditional institutions offer credit training courses as a short course or as part of a diploma or degree program. Usually, the courses require participants to go to a physical lecture hall, participate in classroom discussions, and take a timed exam. Students are required to attain a specific minimum score in order to graduate or receive a certificate of competency.
Credit professionals can also attend seminars organized by professional associations and employers. Seminars are less intensive compared to online classrooms and traditional institutions, and they can run for a few days or weeks.
The last option is self-study, where credit professionals acquire knowledge and skills by reading books and watching video tutorials without physically going to a lecture hall.
Courses Covered In Credit Training
Credit training courses prepare students for a career in credit analysis, and participants are equipped with complete skills required to evaluate a potential borrower to determine their creditworthiness. Some of the courses covered in credit training are as follows:
1. Commercial lending
The commercial lending course equips credit professionals with the knowledge and skills required to be effective commercial lenders, underwriters, or loan reviewers. Students acquire skills that they need to build strong relationships with commercial clients, as well as to conduct credit-focused conversations that provided value to both parties.
Students also learn how to identify and analyze lending opportunities, assess and mitigate credit risks, and structure commercial loans. The commercial lending course also covers loan documentation. The loan documentation module teaches credit professionals about the various documentation that potential customers are required to provide during loan review. Also, participants learn how to evaluate each document as part of the loan evaluation process.
2. Consumer lending
The consumer lending course is ideal for bank employees, entry-level consumer lenders, and consumer credit personnel. The course covers the intricacies of consumer lending, from data collection to disbursement of funds. Participants learn key consumer lending concepts, such as closed-end loans, open-end loans, indirect loans, and other credit products.
At the end of the course, the students are required to be conversant with the credit verification process, direct and indirect lending, key regulations affecting consumer lending, as well as the 5 C’s of Credit that lenders use in credit evaluation.
The course also equips participants with essential skills to help them evaluate loan requests for an unsecured personal loan, auto loan, home improvement loan, or debt consolidation loan, and recognize variables that affect consumer loan structures.
3. Small business lending
The goal of the small business lending course is to equip credit analysts and underwriters with core skills that are required to assess small business lending applications and loan documentation to determine their financing needs and ability to service debt obligations. Participants also learn how to identify and evaluate key components of financial statements, calculate basic ratios, and understand the borrowing needs of small businesses.
Some of the modules covered in the small business lending course include accounting basics, income statements, balance sheets, tax returns, and cash flow analysis. At the end of the course, participants should be conversant with how to synthesize their findings to make a lending decision.
4. Financial analysis
The goal of the financial analysis course is to equip learners with core skills and knowledge on how to perform a comprehensive financial analysis of a corporate borrower using different financial ratios. Participants learn how to derive financial ratios and how to use the ratios to analyze and compare financial statements and supporting notes.
At the end of the course, the learners should be able to interpret what the analysis outcome indicates about the prospects of the organization and uncover its profitability and leverage drivers.
CFI offers the Commercial Banking & Credit Analyst (CBCA)™ certification program for those looking to take their careers to the next level. To keep learning and advancing your career, the following resources will be helpful: