Date & Time
August 13, 2026
8:30am - 4:30pm
Registration Fee
Member Fee: $265
Non-Member Fee: $465
Overview
Working capital financing for a growing business can be very profitable for a commercial bank. However, lenders should recognize the risks and possess the credit skills required for such lending. These skills are especially important for lenders currently managing working capital lines of credit but have inadequate training in C&I lending.
Seminar Key Topics
- Understanding the risks in working capital financing
- Determining the appropriate amount of a line of credit
- Recognizing the warning signs of the high-risk borrower
- Rigorously evaluating accounts receivable and inventory
- Structuring and monitoring a working capital line of credit
- Protecting and liquidating working capital collateral
Opening Topics
The seminar begins with an overview of working capital lending with a special emphasis on permanent working capital loans. We outline the risks associated with this type of lending. Attendees then review an approach for estimating the appropriate amount of a line for a potential borrower. And, how to avoid the common mistakes in determining the amount of a line of credit.
The Desirable Working Capital Borrower
Not all businesses are suitable for working capital financing. Therefore, we review the characteristics of a Desirable Working Capital Borrower. These characteristics have shown to lessen credit risk and enhance the likelihood of a profitable lending relationship. Additionally, we outline Potential Warning Signs of High Credit Risk. Signs that a lender may view as a warning flag and to approach with caution.
Evaluating the Borrower
The next step for a lender is to evaluate the operating & financial management of the business. Attendees review a checklist as to specific questions that a lender should ask of the borrower. These questions provide a framework for developing an understanding of the operations of the business. Next, a lender needs to gauge the quality of the receivables and inventory. Once again, we outline a list of questions pertaining to the receivables and inventory. The answers to these questions will provide insight as to the quality of these working assets. Lastly, attendees review an outline for determining a liquidation value of inventory.
Structuring & Monitoring the Line of Credit
Key topics in the section include:
- Loan Structuring: Credit Concerns
- Guidelines for Structuring
- Typical Financial Covenants
- Monitoring, Control & Documentation
- Accounts Receivable & Inventory Eligibility
- Structuring a Borrowing Base
- Non-Notification Receivable Financing
- Loan Monitoring & Compliance
Working Capital Loan Agreement
We review the structure and key components of a realistic sample working capital loan agreement. Due to the nature of the lending, C&I loan agreements differ significantly from other commercial loan agreements. Attendees learn how a lender uses the agreement to manage and monitor credit risk in a working capital borrowing relationship.
Collateral Control & Protection
A lender should have a fundamental understanding of the requirements for controlling , protecting and if necessary, liquidating their collateral of receivables & inventory. Topics include:
- Liquidation Procedures: Receivables & Inventory
- UCC: Liquidation of Intangible Personal Property
- UCC: Liquidation of Tangible Personal Property
- Protecting Inventory Collateral
Who Will Benefit
Commercial lenders, loan portfolio managers, credit analysts, underwriters, loan review officers and anyone who desires to increase their commercial lending skills.
Instructor
Jim Shreve has conducted seminars for attendees from over 450 banks over the last 10 years. He has over 25 years in secured commercial lending and credit administration including 10 years of extensive loan work-out experience with a major Texas based regional bank during the tumultuous 1980s. He holds a Masters in Finance and a B.S. in Accounting.
Cancellation Policy
Due to commitments we must make to secure a class, we need your help. If you must cancel your registration, please do so at least 3 business days prior to the seminar date to avoid a $125 cancellation fee. Any registrant who does not cancel will be billed the full registration fee. Substitutions are welcome at no additional charge.
Additional Information
Click here for hotel and area information.