Financial Statement Analysis for Lenders and Credit Analysts (AF-059) Training Course

Financial Statement Analysis for Lenders and Credit Analysts

Lending decisions depend on a clear view of whether a borrower can generate enough cash to repay its obligations. Published financial statements contain much of the…

5 daysClassroom or online

49Upcoming dates

12Cities

£2,250Fees from

Course overview

Introduction

Lending decisions depend on a clear view of whether a borrower can generate enough cash to repay its obligations. Published financial statements contain much of the information needed, but they can also mislead when accounting choices, one-off items or aggressive presentation hide underlying weakness.

This training course develops the analytical skills that lenders and credit analysts need to evaluate corporate borrowers with confidence. Participants learn to analyse income statements, balance sheets and cash flow statements from a credit perspective, adjust reported figures, assess debt capacity and identify early warning signals.

Through realistic case studies, participants build cash flow-based credit assessments, evaluate covenants and structure recommendations, so they can present well-reasoned credit decisions to credit committees and monitor borrowers effectively over the life of a facility.

Course Objectives

By the end of this training course, participants will be able to:

Read and interpret financial statements from a lender's perspective
Analyse profitability, liquidity, leverage, efficiency and coverage ratios
Adjust reported earnings and debt for non-recurring items and off-balance-sheet obligations
Assess cash flow generation and debt service capacity
Identify accounting red flags and early warning signs of financial distress
Evaluate business, industry and management risk alongside financial analysis
Design covenants and facility structures that match borrower risk
Prepare clear credit reports and recommendations for credit committees

Target Audience

This training course is suitable for a wide range of professionals, including:

Credit analysts and relationship managers in banks
Corporate lending and leasing professionals
Credit risk managers and credit committee members
Trade credit and supplier risk analysts
Investment analysts focused on debt instruments
Internal auditors reviewing lending portfolios
Finance professionals seeking stronger analytical skills

Training Methodology

Participants work through company financial statements in spreadsheet-based exercises, progressively building a full credit analysis. Short technical sessions, group discussion of real-world cases and credit committee simulations help participants connect financial analysis to sound lending judgement.

Target Competencies

Credit-focused financial analysis
Cash flow and debt capacity assessment
Accounting quality evaluation
Covenant and structure design
Early warning monitoring
Credit report writing

Course outline

1Day One: Credit Analysis Foundations

Principles of Lending: Character, capacity, capital, collateral and conditions
Financial Statements Overview: How the three statements connect
Accounting Policies That Matter to Lenders: Revenue, inventory, leases and provisions
Business and Industry Risk: Competitive position, cyclicality and dependency
Management and Governance Risk: Strategy, track record and transparency
The Credit Process: Application, analysis, approval and monitoring
Case Study: Initial risk assessment of a mid-sized manufacturing borrower

2Day Two: Ratio and Earnings Analysis

Profitability Analysis: Margins, returns and earnings stability
Liquidity Analysis: Current ratio, quick ratio and working capital needs
Efficiency Analysis: Receivable, inventory and payable cycles
Leverage Analysis: Debt to equity, debt to EBITDA and capital structure
Normalising Earnings: Removing one-off and non-cash items
Trend and Peer Analysis: Putting ratios in context
Practical Exercise: Ratio analysis and adjusted EBITDA calculation

3Day Three: Cash Flow and Debt Capacity

Cash Flow Statement Analysis: Operating, investing and financing activities
Free Cash Flow: Definitions relevant to debt repayment
Debt Service Coverage: Interest cover, DSCR and fixed charge cover
Forecasting Borrower Cash Flows: Base and downside scenarios
Off-Balance-Sheet and Hidden Debt: Leases, guarantees and contingent liabilities
Determining Sustainable Debt Capacity: Combining analysis and judgement
Workshop: Building a cash flow forecast and stress test for a borrower

4Day Four: Warning Signs and Accounting Quality

Red Flags in Financial Statements: Revenue, receivables and inventory anomalies
Earnings Management Techniques: How results can be shaped
Auditor Reports and Disclosures: Reading the notes carefully
Early Warning Indicators: Financial and behavioural signals
Industry Downturns and Stress Scenarios: Assessing resilience
Problem Loan Recognition: When and how to escalate
Case Study: Identifying warning signs before a corporate default

5Day Five: Structuring and Recommending Credit

Facility Types: Matching loans to borrower needs and cash cycles
Covenants: Financial, information and behavioural covenants
Security and Guarantees: Assessing collateral value and enforceability
Pricing for Risk: Linking margins to risk assessment
Writing the Credit Report: Structure, clarity and balanced conclusions
Ongoing Monitoring: Covenant compliance, annual reviews and watch lists
Simulation: Presenting a credit recommendation to a credit committee

Frequently asked questions

How long is the Financial Statement Analysis for Lenders and Credit Analysts course?

The course runs over 5 days of classroom training, usually Monday to Friday.

When is the next Financial Statement Analysis for Lenders and Credit Analysts course?

The next public date is 7 - 11 Dec 2026 in London. There are 49 upcoming dates in total.

Where is this course held?

Upcoming sessions run in London, Barcelona, Frankfurt, Dubai, Geneva, Istanbul, Kuala Lumpur, Madrid, Paris, Rome, Amsterdam, Cape Town.

Can I take Financial Statement Analysis for Lenders and Credit Analysts online?

Yes. Every date can also be joined live online in a virtual classroom with the trainer, for £1,280 per participant. Choose "Live online" in the dates table when you register.

How much does the course cost?

Fees start from £2,250 per delegate, depending on the city. Fees include tuition and course materials.

Do participants receive a certificate?

Yes. Delegates who complete the course receive a London Leadership Management Innovation certificate of completion.

Can this course be delivered in-house for our team?

Yes. LLMI can tailor and deliver this course privately for your organisation at your premises or in one of our training cities.

Course information last updated 14 November 2026.

Financial Statement Analysis for Lenders and Credit Analysts

Course overview

Introduction

Course Objectives

Target Audience

Training Methodology

Target Competencies

Course outline

Dates and fees

Frequently asked questions

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