Analysing Personal Cash Flow

Business Issue

Meeting the credit needs of small business owners and profitable high-net-worth customers presents these special challenges for lenders:

• Identifying the true value of assets and liabilities
  
• Determining cash flow and the capacity to repay from income tax returns
  
• Projecting future cash flow from a variety of sources
  
• Separating personal and business related assets and liabilities.

Omega Performance's Solution

Analysing Personal Cash Flow is Omega's system for building and reinforcing advanced consumer credit skills. It teaches participants how to reconstruct a borrower's historical cash flow, determine the real value of personal assets and liabilities, and project future cash flow and loan repayment sources. The core of the system is Omega's exclusive Decision Strategy, a step-by-step process for investigating, analysing, and interpreting borrower information.

Who Should Be Trained

Analysing Personal Cash Flow is recommended for:

• Consumer bankers
  
• Personal and private bankers
  
• Small business bankers
  
• Commercial bankers who need to evaluate personal financial statements

Results You Can Expect

Analysing Personal Cash Flow helps you and your lenders:

• Strengthen customer relationships by developing personal and private banking skills
  
• Improve credit quality and reduce risks in transactions that require complex analysis skills
  
• Increase productivity by eliminating time wasted analysing bad loans
  
• Determine the capacity of personal guarantors to repay business loans

What Is Included

Analysing Personal Cash Flow contains five modules, each of which covers an important aspect of personal cash flow. The modules are:

Preliminary Analysis introduces participants to the Decision Strategy, Omega's graphic picture of each step in the process of making sound loans to individuals. It then guides them through the preliminary analysis step, which includes determining if a loan request is reasonable and within bank policy and identifying potential sources of repayment.

Cash Flow Analysis introduces a detailed cash flow model for calculating estimated cash flow for the preceding tax year.

Analysing Personal Financial Position explains how to examine the assets and liabilities listed on a borrower's personal financial statement and evaluate their effect on the borrowers ability to repay the loan.

Projecting Cash Flow teaches participants to use information about a borrower's past financial performance, at both a summary and a detailed level, to project a borrower's repayment capacity.

Loan Structure shows participants how to develop a loan structure that benefits both the borrower and the lending institution.

Prerequisites

The prerequisite for Analysing Personal Cash Flow is Omega's Consumer Lending or its equivalent. Participants should have some familiarity with assets and liabilities, personal financial statements and tax returns.

Delivery Options

To effectively implement Analysing Personal Cash Flow, Omega recommends one of three approaches: self-study, self-study with mentor, or workshop.

About Omega Performance

Since 1976, Omega Performance has advised, trained, and coached more than two million people from over 2,500 financial institutions. Omega will measurably improve your business results by improving the performance of your people.

Learning Method: