Commercial Banking - Debt Modeling (On-Demand - CFI)
Overview
This course covers the key components of building a debt model commonly used by commercial banks in assessing a borrower’s cash flows and performing covenant analysis. In this course, we will discuss the differences between operating finance (operating line of credit) and term lending (term loans). We will walk through the major components of a debt model, including the yearly debt schedules, covenant analysis, monthly operating line analysis, and a quick overview of a risk rating model. By the end of this course, you should be able to construct a fully-linked debt model which entails the cash flow forecast of a borrower, its debt capacity, the impact of cash sweep, and any early warning signs of a covenant breach.
Access expires 180 days from purchase date |
Applicable for
Learning Objectives
Upon completing this course, you will be able to:
- differentiate between operating finance (operating line of credit) and term lending (term loans)
- understand the benefits of using different types of credit facilities
- build a yearly-debt schedule laying out the different types of debt drawn, the interest expense, and the principal repayments
- perform covenant analysis to identify early warning signs and possibilities of breach
- construct a monthly operating line analysis to determine the operating line drawn and the amount available based on margining
- understand how the amount of leverage could impact a company’s risk rating
Content
Course Content Created: June 2020
The information is current as of the creation or last updated date. While we strive to keep our inventory updated and periodically remove outdated titles, changes in accounting, tax, legislation and technology may occur. Purchasers should note the date and verify for themselves if the course is still relevant to their needs.About This Product
On-Demand Courses by CFI. Corporate Finance Institute (CFI) courses are designed for finance professionals and industry practitioners who want to master the art of corporate finance. The instructions on how to access this course will be included on your registration confirmation.
Please note that not all on-demand courses include downloadable materials such as course notes or slides.
How to get started
Upon completion of purchase, go to mylms.bccpa.ca and log in using your CPABC Online Services credentials. Click “Go to your Courses and Materials” to go to your Learning Center, then find and click on your course title.
Course Dates & Registration
- 4.5
- CPD Hours
- 0
- Ethics Hours
- 0
- AML Hours
- 5
- Credits
Starting April 1, 2026, a 2.1% fee will be applied to all credit card transactions. Learn more about this fee and how it relates to PD registrations.
Commercial Banking - Debt Modeling (On-Demand - CFI)
- 4.5
- CPD Hours
- 0
- Ethics Hours
- 0
- AML Hours
- 5
- Credits
Overview
This course covers the key components of building a debt model commonly used by commercial banks in assessing a borrower’s cash flows and performing covenant analysis. In this course, we will discuss the differences between operating finance (operating line of credit) and term lending (term loans). We will walk through the major components of a debt model, including the yearly debt schedules, covenant analysis, monthly operating line analysis, and a quick overview of a risk rating model. By the end of this course, you should be able to construct a fully-linked debt model which entails the cash flow forecast of a borrower, its debt capacity, the impact of cash sweep, and any early warning signs of a covenant breach.
Access expires 180 days from purchase date |
Applicable for
Learning Objectives
Upon completing this course, you will be able to:
- differentiate between operating finance (operating line of credit) and term lending (term loans)
- understand the benefits of using different types of credit facilities
- build a yearly-debt schedule laying out the different types of debt drawn, the interest expense, and the principal repayments
- perform covenant analysis to identify early warning signs and possibilities of breach
- construct a monthly operating line analysis to determine the operating line drawn and the amount available based on margining
- understand how the amount of leverage could impact a company’s risk rating
Content
Course Content Created: June 2020
The information is current as of the creation or last updated date. While we strive to keep our inventory updated and periodically remove outdated titles, changes in accounting, tax, legislation and technology may occur. Purchasers should note the date and verify for themselves if the course is still relevant to their needs.About This Product
On-Demand Courses by CFI. Corporate Finance Institute (CFI) courses are designed for finance professionals and industry practitioners who want to master the art of corporate finance. The instructions on how to access this course will be included on your registration confirmation.
Please note that not all on-demand courses include downloadable materials such as course notes or slides.
How to get started
Upon completion of purchase, go to mylms.bccpa.ca and log in using your CPABC Online Services credentials. Click “Go to your Courses and Materials” to go to your Learning Center, then find and click on your course title.
Course Dates & Registration
Starting April 1, 2026, a 2.1% fee will be applied to all credit card transactions. Learn more about this fee and how it relates to PD registrations.