Determining the Causes of the Problem
TOOL 5.1 The symptoms and the causes of the problem must be properly identified before the Bank can choose a
A Structured Approach to Handling Problem Loans 2
TOOL 5.0 The Banks View of the Company First perform the “7 steps” then: 1.What is the immediate cash flow?
Ratio Analysis – Revenues and Profitability
TOOL E7 The “Revenues and Profitability” component of financial risk analysis provides insight into a client’s ability to generate profits,
Short Term Cash Flow – Priority Payments and Receipts
TOOL 4.7 Account 1 Account 2 Current Balance Outstanding Debits? Outstanding Credits? Reconciled Balance Priority Payments What has to be
Ratio Analysis – Debt Service And Liquidity
TOOL E14 The “Debt Service and Liquidity” component of financial risk analysis provides insight into the quality of a client’s
Evaluate our Competitive Position with Other Stakeholders
TOOL 4.6 Credit Base Name DBS Other Stakeholders Lender / Supplier / Other Creditors Preferred / Secured / Unsecured /
Ratio Analysis – Asset Management
TOOL E9 The “Asset Management” component of financial risk analysis provides insight into whether assets are being used efficiently to
Ratio Analysis – Leverage & Debt Capacity
TOOL E11 The “Leverage & Debt Capacity” component of financial risk analysis provides insight into a client’s usage of –
Cash Flow Drivers (PACED)
TOOL E12 Operational Cash Drivers → Operational Cash Flow P Revenues and profitability A Asset management C Asset management Financial
Documentation and Collateral: Legal Enforceability Checklist
TOOL 4.5 Is it legally perfect? Do we have the original documents? – Account opening / signing authorities– Loan agreements–
