Business Financial Statements & Tax Returns: How the Working Capital Cycle, Equipment Purchases and Other Factors Affect Cash Flow - Sp20

Course Length
90 mins

Richard Hamm


Upcoming Sessions


Presenter:  Richard Hamm, Advantage Consulting and Training

This 90-minute program will be presented live on: June 16, 10:30 a.m. - 12:00 p.m. Central Time
Recording available through: September 16, 2020
Price: $275

Working capital is misunderstood by many borrowers and bankers alike.  This program provides the analytical tools (with case examples) to understand how the working capital cycle affects the borrowing needs of a business in terms of a line of credit, and how the dollar size of the line of credit is related to this cycle.


Equally important is to understand how equipment finance needs arise, and how to use financial statements or tax returns to determine historical patterns of capital expenditures and related long-term financing, plus gaps between purchases and financing.  This allows the lender or analyst to position your bank to be proactive in helping customers optimize or maximize equipment financing, while minimizing its draining effect on working capital via small purchases (not financed) and down payments.


Topics covered include:

  • How visualize the working capital cycles, plus a simple chart to use
  • Related line of credit size to working capital needs and basic cash flow
  • Areas of caution when using accounts receivable and inventory as collateral
  • Overview of equipment financing (loan or lease) industries that tend to have stronger equipment financing needs
  • Overview of equipment loan vs. lease considerations
  • Capitalized leases vs. operating leases and upcoming FASB changes, with case example of how to capitalize an operating lease for analytical purposes
  • Issues with equipment as collateral


Target Audience: Commercial and business lenders, credit analysts, community bankers, private bankers and portfolio managers; plus, loan review and examination specialists, and credit officers involved evaluating or approving equipment financing


Related GSB Online programs/topics:

  • Business Financial Statements & Tax Returns:  Developing and Analyzing a Statement of Cash Flows
  • Business Financial Statements & Tax Returns:  Developing and Analyzing the Uniform Credit Analysis (UCA) Model

Shopping Cart

Your cart is empty