Apply the five Cs of credit framework to structure a borrower assessment.
Finance & Banking
Writing Credit Memoranda and Presenting Loan Proposals to Credit Committees
Learn to structure credit memoranda around the five Cs of credit, build defensible loan structures and covenants, and present proposals confidently to credit committees.
🗓️Duration5 training days
📚Content4 modules · 8 sessions
🎓On completionAccredited attendance certificate
About the programme
Course Overview
Credit memoranda succeed or fail on whether they give credit committees the evidence needed to say yes with confidence. This course builds that skill from the ground up, starting with the five Cs of credit — character, capacity, capital, collateral and conditions — and the financial spreading and debt service coverage calculations that support them. Participants learn to structure a memorandum so industry analysis, financial analysis and risk assessment build toward a clear recommendation, then move into loan structuring: pricing by risk rating, collateral and guarantee packages, and financial and non-financial covenants calibrated to the borrower's actual plan rather than copied from the last deal. A dedicated module covers building base case and downside sensitivity analysis to demonstrate covenant headroom under stress, and the final module rehearses presenting the proposal to a credit committee, anticipating likely challenge, and negotiating conditions or exceptions when a deal falls outside standard policy. Exercises use realistic borrower scenarios so participants leave with a memorandum structure, a covenant drafting approach and a presentation style they can apply to their next live proposal.
Expected Learning Outcomes
Spread financial statements and calculate debt service coverage and leverage ratios accurately.
Draft a credit memorandum that links industry analysis, financial analysis and risk assessment coherently.
Structure loan pricing, collateral, guarantees and covenants appropriate to the borrower's risk rating.
Build base case and downside sensitivity analysis to test covenant headroom before submission.
Present a loan proposal to a credit committee and respond to challenge with evidence-based answers.
Draft exception requests and record committee conditions in a form usable for documentation and closing.
Who Should Attend
Relationship managers preparing loan proposals for small and mid-sized business borrowers.
Credit analysts drafting memoranda for corporate and commercial banking transactions.
Underwriters responsible for structuring covenants and collateral in lending facilities.
Credit committee members seeking a shared framework for evaluating proposals consistently.
Portfolio managers monitoring covenant compliance after facilities have been approved.
Graduate and early-career bankers rotating through commercial credit functions.
Course Modules
Select any module to see its sessions and points.
01Foundations of Credit Analysis and Borrower Assessment
2 sessions · 8 points
Session 1Applying the Five Cs of Credit to a Borrower
- Assess borrower character and management track record using historical repayment and relationship data.
- Evaluate repayment capacity through historical and projected cash flow rather than reported profit alone.
- Analyse the borrower's capital structure and ownership commitment through equity contribution and leverage.
- Value proposed collateral and assess conditions in the borrower's industry and economic environment.
Session 2Spreading Financial Statements and Calculating Coverage
- Spread historical financial statements into a standardised format that enables period-on-period comparison.
- Calculate the debt service coverage ratio and interpret it against the lender's minimum policy threshold.
- Adjust reported EBITDA for non-recurring items before calculating leverage and coverage ratios.
- Reconcile working capital movements to assess the borrower's short-term liquidity position.
02Structuring the Credit Memorandum
2 sessions · 8 points
Session 1Building the Narrative from Industry to Financial Analysis
- Draft an executive summary that states the request, purpose, amount and recommendation in the opening lines.
- Write an industry analysis section that links sector trends to the specific borrower's competitive position.
- Present historical and projected financial analysis in a narrative that explains, not just repeats, the numbers.
- Structure the borrower background section to highlight ownership, management and prior banking relationship.
Session 2Identifying Risks, Mitigants and Loan Structure
- Identify the principal credit risks specific to the borrower, transaction and industry under review.
- Draft mitigants that directly address each identified risk rather than restating generic loan protections.
- Propose a loan structure, including tenor, amortisation profile and repayment source, that fits the risk profile.
- Recommend a risk rating supported by the evidence presented earlier in the memorandum.
03Loan Structuring and Covenant Design
2 sessions · 8 points
Session 1Pricing, Collateral and Guarantee Structures
- Set risk-based pricing that reflects the borrower's risk rating, facility tenor and expected loss.
- Structure collateral packages, including perfection and valuation requirements for different asset classes.
- Draft guarantee and subordination arrangements appropriate to the borrower's group structure.
- Assess loan-to-value and advance rate limits against the specific collateral pledged.
Session 2Drafting Financial and Non-Financial Covenants
- Draft financial covenants, including leverage, coverage and net worth tests, calibrated to the borrower's plan.
- Write non-financial covenants covering reporting, information rights and restrictions on major transactions.
- Set covenant headroom levels that balance early warning value against unnecessary default risk.
- Draft events of default and cure period provisions appropriate to the facility and borrower risk rating.
04Presenting to and Negotiating with Credit Committees
2 sessions · 8 points
Session 1Preparing the Committee Presentation and Sensitivity Case
- Prepare a base case and downside sensitivity case showing covenant headroom under stressed assumptions.
- Build committee presentation materials that lead with the recommendation and support it with evidence.
- Anticipate the questions a credit committee is likely to raise and prepare supporting analysis in advance.
- Align the credit memorandum, term sheet and presentation so figures match exactly across all three documents.
Session 2Handling Challenge, Conditions and Exception Requests
- Respond to credit committee challenge by referring to specific evidence rather than restating assertions.
- Negotiate conditions precedent and covenant adjustments requested by the committee before approval.
- Draft an exception request when a proposal falls outside standard policy, with clear compensating controls.
- Record committee conditions and follow-up actions in a form that feeds into loan documentation and closing.
What the participant receives
4 course modules
A structured syllabus
8 training sessions
across 5 days
32 detailed points
Applied, detailed content
Accredited attendance certificate
On completing the programme
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