After completing this training, participants should be able to:

• Demonstrate a knowledge of key individual tax forms and schedules 
• Explain why tax return adjusted gross income is not a good representation of cash flow
• Identify information in the tax return vital to cash flow analysis 
• Convert tax return items of income or loss into a cash flow equivalent, and determine if items have recurring cash flow effects
• Identify interrelationships of borrower’s various financial activities as presented on a tax return
• Use a worksheet to quickly convert tax return line items into an accurate cash flow statement
• Explain tax implications of pass-through entity businesses
• Evaluate resources available to service debt from analysis of individual tax returns and personal financial statements

After completing this training, participants should be able to:

• Demonstrate a knowledge of more complex tax issues and how they impact cash flow, including realization of capital gains/losses, installment sales, like-kind exchanges, and LLC/Partnership contributions and distributions
• Explain tax implications of pass-through entity businesses and what drives business entity choice
• Identify information in a business tax return vital to cash flow 
• Explain the concept of global cash flow – how to decipher cash flows between individuals and related entities
• Construct and analyze cash flow from individual and business tax returns and financial statements, using cash flow worksheets
• Evaluate global resources available to service debt from analysis of the individual and business tax returns and financial statements.

After completing this training, participants should be able to:

• Identify documents needed to construct a global cash flow statement
• Explain key concepts regarding how to construct a cash flow statement from an individual tax return
• Explain key concepts regarding how to construct a cash flow statement from a corporate tax return
• Construct and analyze global cash flow for related entities through the use of a case study illustrating cash flow movements between related companies and their common owners
• Use a global cash flow statement to determine the borrower’s ability to service the debt

After completing this training, participants should be able to:

• Analyze the capacity of the individual to generate recurring cash flows.
• Determine the true value of the individual’s assets and liabilities supporting the credit.

Module I – Introduction to Credit Risk:  Five C’s of credit analysis, sources of wealth/wealth life cycle, risks of lending to wealthy individuals, overview of financial statements 

Module II – Fundamental Credit Analysis: Individual income/cash flow analysis, adjusted net worth/contingent liabilities, leverage/liquidity/financial ratios

Module III – Critical Credit Knowledge: Forms of business organization, lending to business owners, lending to different professionals (physicians and attorneys), loan documentation basics

Module IV – Loan Structure: Typical borrowing needs/requests of wealthy individuals, loan structure fundamentals, collateral/guarantees/covenants, loan compliance/monitoring

Module V – Making the Client Call: Call preparation and exploring additional banking opportunities for existing and prospective clients, and understanding the perspective of the underwriter in making credit risk management decisions

• how trusts are used for estate planning purposes
• differences between grantor trusts vs. non-grantor trusts as well as revocable vs. irrevocable trusts 
• key trust tax forms and schedules and how to calculate cash flow from a trust tax return, 
• Distributable Net Income (“DNI”) as well as the difference between Trusts Principal and Trust Accounting Income (“TAI”)
• how to evaluate the primary and secondary sources of repayment when lending to a trust

• fundamental principle of understanding real property as an important component of an investor’s portfolio
• techniques for analyzing the client’s real property investment 
• how to conduct more detailed discussions with bank underwriting personnel