Recording - Global Cash Flow Analysis: Examples, Issues and Obstacles - (3 Parts) - Fa18

Course Length
90 mins

Richard Hamm



Presenter: Richard Hamm, Advantage Consulting & Training

This three-part program will be presented live on: November 27, December 4 & 11, 10:30 a.m. – 12:00 p.m. Central Time
Recording available through: March 11, 2019
Price: $555


This seminar covers common versions of global cash flow (GCF) analysis being used by bankers, with a focus on GCF as part of the underwriting process in most medium-to smaller-sized businesses and self-employed lending situations. We will explore the information and resources needed, plus key issues for extracting data from tax returns. One area of concern is the income listed on page two of Schedule E compared to withdrawals or contributions shown on the related K-1s. Another issue is how to adjust or reduce the personal cash flow for income taxes and living expenses. This leads to a discussion of the advantages and disadvantages of adjusting for income taxes and living expenses, versus adjusting the required coverage factor. We complete the GCF analysis discussion by reviewing an optional and simplified approach for integrating the cash flow effects of business balance sheet changes.


Topics to be covered in this course include:

  • Versions of GCF being used by bankers
  • Regulatory concept of global analysis
  • GCF as an underwriting tool
  • Analytical and conceptual issues
  • Mixing two approaches to debt coverage
  • Giving credit for business earnings or amount distributed
  • Using averages for debt coverage ratios
  • Incorporating balance sheet changes
  • Recurring vs. non-recurring items
  • Effect of loss carryforwards in a business tax return
  • Where is the cash flow (if any) when a capital gain is listed?
  • GCF and the larger, global analysis of CRE owners/guarantors and related contingent liabilities
  • Some tax return basics/issues along the way
  • When to recognize that the business itself or a real estate project should stand on their own, and a global cash flow “can’t make a bad loan good.”


Target Audience: Branch managers, consumer lenders, mortgage bankers, private bankers, small business lenders, commercial lenders, credit analysts, loan review specialists, special assets officers, lending managers and credit officers

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