MADISON, Wis. (10/28/08)--Credit unions can strengthen the basic components of their member business loan programs by listening to two audio conferences offered by the Credit Union National Association. Member Business Lending and the 5 Cs of Credit audio conference Nov. 6 will establish the foundation for making credit decisions--the five Cs of credit--and explain how these relate to the overall potential of a member business loan program. The conference will review the five factors of solid credit decisions:
* Capacity--Identify, using simple cash flow, whether the business borrower has the ability to repay existing and proposed liabilities; * Capital--Explore how capital serves as an indicator of the owner's commitment and financial strength; * Collateral--Analyze and understand that collateral is the tertiary source of repayment; * Conditions--Learn how to objectively look at positive and negative changes in the local economy and globally; and * Character--Reveal the key elements to determine if a potential borrower has the character needed to succeed and the commitment to repay the obligation.
A Nov. 10 audio conference, the Fundamentals of Pricing and Structuring Member Business Loans audio conference, will help credit union professionals discover if they are pricing and structuring member business loans to meet the needs of the market, the credit union, and the members. The conference will explain the basic risk-rating system and identify key elements to assure the credit function is rating loans appropriately and that the pricing matrix reflects the risk associated with providing member business loans. The conference will cover:
* Creating and reviewing a risk rating matrix; * Key elements of structuring member business loans; * How pricing and risk are related; and * How a solid risk-rating matrix improves portfolio management.
For more information, use the links.