• Shockproof! Training
  • 1.866.237.7228
  • Non-Member

    Membership Check

    Please enter your email address and we will check to see if a membership exists for your organization.

    Check Cancel
  • Account
    • Sign in

      If you have an account, please enter your login information.

      Sign-in

      Forgot your password?

      Please provide your email address and we'll email you a reminder.

      Send it to me!

      Subscribe

      Please provide the information below to receive our mailings.

      Subscribe!
      Account Options
      1. Sign In... enter the resource center
      2. Forgot password?... memories fade
      3. Subscribe... to receive our mailings
      4. Contact us... if you have any questions, just ask
      5. Create a User Account* requires membership
  • Sign-in
  • Home
  • Products
  • Learning Paths
  • Calendar
  • Pricing
  • Communications
  • Contact Us
  • Help
  • About Us
  • Membership Check
  • Account

Instructor Blog - Credit College - CRE

  1. Home
  2. Communications
  3. Instructor Blog
  4. Credit College - CRE

Management Assessment, Competitive Forces, and Projected Performance


  • admin

  • 6/9/2021 2:35:33 PM

  • 234

  • Credit College - CRE

Q: On slide 28-30 where we determine that Sequoia Properties projected 2019 cash flow deficit is $2.7MM, why is that not a stopping point for this deal? It seems like we're done with this application considering the significant negative cash flow. I also assume that we have a PFS on file and can see that Mr. Schumacher does not have the liquid assets to cover the deficit.

A: We could indeed stop at this point based on the magnitude of the projected cash flow deficit. It seems, however, that in considering a company operating amid all the complexities and the intertwined cash flow flexibilities at work in this family of companies, we might be missing some alternative sources of cash flow to correct the deficiency.

We continued to work our way through a step-by-step compilation of a global cash flow to consider every possible source of "family" cash flow under the corporate control of Mr. Schumacher. By patiently considering the global cash flow analysis with a genuine intent to uncover related party cash support, we assembled a more complete analysis. We have in turn positioned ourselves to make a more responsible credit decision based on a more complete information base that explores cash support from the guarantor and sister companies to arrive at a solution to the apparent cash flow shortfall experienced by our borrower.

Course overview:  Management Assessment, Competitive Forces, and Projected Performance

Categories
  • Accounting Essentials(93)
  • Business Income Tax Returns(118)
  • Commercial Real Estate(30)
  • Communications(10)
  • Contractors(43)
  • Courses(1)
  • Covenants(7)
  • Credit Basics(80)
  • Credit College - Cash Flow(9)
  • Credit College - Commercial Business(195)
  • Credit College - CRE(199)
  • Credit College - Taxes(70)
  • Credit Curriculum(1)
  • Credit Write Up(30)
  • Debt Capacity(9)
  • EBITDA(25)
  • FASB95(10)
  • Financial Analysis(50)
  • Five Cs of Credit(10)
  • Fund Accounting(49)
  • General(0)
  • Global Cash Flow(46)
  • Healthcare(17)
  • Loan Documentation(45)
  • Minimum Financial Data(12)
  • Not for Profit Analysis(22)
  • Personal Income Tax Returns and Cash Flow(65)
  • Problem Loans - Loan Classification(2)
  • Projections(22)
  • Statement Spreading(5)
  • Stress Testing(1)
  • Technical Issues(8)
  • Testing(1)
  • Tools(1)
  • Trusts(3)
  • UCA Cash Flow(56)
  • User Community(6)
  • Working Capital and Cash Flow(26)
Shockproof! Training

PO Box 30304 Walnut Creek, CA 94598
1.866.237.7228 support@shockproof.com

  • About
  • Career Opportunities

© Copyright 2001-2022 Shockproof! Training