Facility Structuring

Program Description

Facility Structuring

RATIONALE

Drawing accurate conclusions about a borrowing customers’ business is a critical prerequisite to providing appropriate solutions to the customers’ credit needs. Facility structuring is about incorporating features, protections and control mechanisms in the facilities being granted that will mitigate the key risks identified.

Good facility structuring also ensure there is optimal pricing by achieving a proper risk/reward ratio. The protection and control features must be closely aligned with the key risks to be mitigated. Doing this will achieve the most appropriate facility structure in terms of protection, control and pricing. 

COURSE CONTENTS

• The 4 Key Considerations in loan structuring
• Establishing credit bases, competency gaps and critical success factors 
• Drawing Conclusions about Key Risks
• Identifying the Sources of Repayment – The key principles
• Establishing Funding Capacity
• The Facility Rationale Product Packaging & Cross-selling Pricing – Principles, Strategies and Practice.
• Credit and Other Documentation Setting
• Covenants and Risk Monitoring Triggers
• Designing a Loan Management Strategy
• Advising the Banking Arrangement. 

LEARNING OBJECTIVES

• On the basis of credit analysis, draw conclusions about the key risks facing a customer’s business.
• Identify the most appropriate facility structure, in terms facility type, pricing, disbursement timing, and facility support
• Create appropriate loan monitoring mechanism through the deployment of effective facility conditions, covenants and risk triggers.