Commercial Credit Underwriting | Lending & Commercial Credit | Financial Analysis | Credit Risk | Foundations
β±οΈ Length: 7.6 total hours
β 4.59/5 rating
π₯ 17,271 students
π February 2026 update
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- Course Overview
- Explore the comprehensive framework of commercial lending, focusing on how financial institutions evaluate the creditworthiness of business entities and manage exposure.
- Analyze the lifecycle of a commercial loan, starting from the initial client discovery phase through to the formal underwriting, approval, and eventual monitoring of the credit facility.
- Deconstruct the credit culture of modern banking institutions to understand how risk appetite influences the types of loans approved and the pricing models applied to borrowers.
- Investigate the qualitative aspects of credit analysis, looking beyond the numbers to evaluate management strength, industry cycles, and the competitive positioning of a business.
- Understand the critical role of loan documentation and legal frameworks in protecting the lender’s interests and ensuring the enforceability of security interests.
- Examine the macroeconomic factors that impact commercial borrowers, including interest rate fluctuations, inflationary pressures, and supply chain disruptions that influence repayment capacity.
- Learn the mechanics of commercial real estate versus C&I (Commercial and Industrial) lending, identifying the unique risk drivers associated with each asset class.
- Study the regulatory environment governing commercial banks, including the impact of Basel III/IV and other global standards on capital requirements and risk-weighted assets.
- Identify the early warning signs of financial distress in a portfolio, enabling proactive risk mitigation strategies before a loan moves into a non-performing status.
- Requirements / Prerequisites
- A foundational understanding of accounting principles, specifically how to read a balance sheet, income statement, and statement of cash flows.
- Basic proficiency in mathematical calculations, including the ability to calculate percentages, growth rates, and basic algebraic formulas used in financial modeling.
- An interest in the financial services sector or corporate finance, making this ideal for aspiring credit analysts, relationship managers, or portfolio officers.
- Access to spreadsheet software such as Microsoft Excel to practice data entry and formula building for financial spreading and ratio analysis.
- No prior experience in commercial banking is required, as the course builds from foundational concepts to more complex risk assessment methodologies.
- A commitment to analytical thinking and attention to detail, which are essential traits for accurately assessing the nuances of a borrower’s financial health.
- Skills Covered / Tools Used
- Mastery of Financial Ratio Analysis, focusing on liquidity, leverage, efficiency, and profitability metrics to determine a company’s operational health.
- Development of Cash Flow Analysis skills, specifically focusing on the UCA (Uniform Credit Analysis) cash flow method to identify the actual cash available for debt service.
- Application of the 5 Cs of Credit (Character, Capacity, Capital, Collateral, and Conditions) as a structured approach to making objective lending decisions.
- Utilization of Financial Spreading Software concepts to normalize financial statements, adjusting for non-recurring items and accounting inconsistencies.
- Implementation of Sensitivity Analysis to stress-test a borrower’s ability to remain compliant with covenants under adverse economic or operational scenarios.
- Techniques for Collateral Valuation and discounting, ensuring that the secondary source of repayment is sufficient to cover the loan exposure.
- Creation of Credit Memorandums, learning how to synthesize complex financial data into a persuasive and logical narrative for credit committee review.
- Design of Loan Covenants (both affirmative and negative) to act as guardrails that protect the lender throughout the life of the loan.
- Benefits / Outcomes
- Gain the ability to independently evaluate a commercial loan request, identifying both the strengths of the deal and the potential mitigants for identified risks.
- Develop a professional credit vocabulary, allowing you to communicate effectively with senior lenders, credit officers, and business stakeholders.
- Enhance your career prospects in corporate banking, investment firms, or private debt funds by mastering the core technical skills of an underwriter.
- Achieve a decision-making framework that reduces subjective bias and relies on data-driven evidence to support lending or investment recommendations.
- Improve portfolio management capabilities by learning how to assign accurate risk ratings that reflect the true probability of default for each borrower.
- Understand the structure of complex credit facilities, including revolving lines of credit, term loans, and bridge financing, and when to use each tool.
- Build a solid foundational knowledge base that serves as a stepping stone for advanced certifications in financial analysis and risk management.
- Increase operational efficiency by learning how to prioritize key risk factors and avoid getting bogged down in irrelevant financial data during the underwriting process.
- PROS
- The course offers a highly practical approach, bridging the gap between theoretical finance and the actual day-to-day tasks performed by professional credit analysts.
- Updated for 2026 market conditions, ensuring that the risk assessment strategies discussed are relevant to current economic challenges and interest rate environments.
- Features a comprehensive 7.6-hour curriculum that provides enough depth for professional development without being overly burdensome for working professionals.
- Boasts a high student rating and a large community of learners, which validates the quality of the instructional design and the clarity of the delivery.
- CONS
- The course is primarily focused on introductory and foundational concepts, which may result in a lack of highly specialized niche content for senior-level executive lenders.
Learning Tracks: English,Finance & Accounting,Financial Modeling & Analysis
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