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Core Borrowing Techniques
Understanding key factors in lending
Key Facts
| Location | London |
| Length | 1 day |
| Fees | ACT Members and Students £550.00+VAT Non Members |
| Max group size | 25 |
Book now
Contact
For further information about this course please contact:
Maggi McDonnell, Training Manager
T: +44 (0)20 7847 2559
E: training@treasurers.org
Further information
An excellent introduction to core borrowing techniques. The course also highlighted the importance in understanding the viewpoint of the banks which is vital in order to present a comprehensive and pre-emptive proposal for your company. Morven A McLaughlin, Treasury Analyst, Group Treasury, British Energy, East Kilbride
Course overview
This course is aimed at those new to borrowing. Borrowing is looked at firstly from the view of the borrower, setting out reasons to borrow and then from the lender’s perspective, using that understanding to present a robust business case to secure the funding and address key concerns. The course covers the key sources and markets for borrowed funds and goes on to look at the risks of borrowing, from key financial risks to those arising from documentation.
Participants on this course may also be interested in the Advanced Borrowing Techniques course to further develop their knowledge.
A 10% discount will be offered when booking both the Core Borrowing Techniques and Advanced Borrowing Techniques courses on consecutive days.
Table of Contents [hide]
Programme
Introduction
- The nature and history of debt
- Debt v equity
- Why firms borrow
Credit risk
- Measure of credit risk
- Debt capacity
- Security and subordination
- Business and financial risk
- Credit ratings
Markets for borrowing
- Sources of borrowed funds
- Introduction to banks
- Markets for borrowed funds
- The bond market
- Committed versus uncommitted funding
Factors in deciding to lend (based on EU SME toolkit)
- Credit assessment
- Presenting a borrowing case
The lending contract
- The cost of borrowing
- Ratings / spreads
- Terms of lending
- Key aspects of documentation
- Managing risk from the lender’s perspective
- Managing risk from the borrower’s perspective
Credit risk exercise
Key financial risks in borrowing
- A risk framework
- Refinancing risk
- Repricing risk
- Interest rate risk
- Currency risk
What you will gain
Participants will learn some of the fundamentals of borrowing and how a lender assesses whether to lend to a corporate borrower and on what terms. They will gain an appreciation of the different sources of finance and lending markets and insight into some of the risks in lending and how these might be managed.
The one-day course will involve some practical exercises to apply the content to real situations.
Who will benefit?
Corporate treasurers and other financial professionals who are new to arranging corporate debt, bank debt in particular.
