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Learn/Accounting and cash flow for lenders
LearnAccounting and cash flow for lenders

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B Basic

  • The three statements through a lender's eyes9m
  • EBITDA and its adjustmentsPro10m
  • Working capital and the cash conversion cyclePro9m

A Advanced

  • From EBITDA to free cash flow for debt servicePro11m
  • Debt-like itemsPro10m
  • Reading a compliance certificatePro11m
  • Revenue recognition and accounting red flagsPro10m
  • FlashcardsPro0/16
  • Basic quizPro80% passes
  • Advanced quizPro80% passes
  • Terms

Accounting and cash flow for lenders

0
of 7 lessons
0
of 16 cards
FlashcardsStart the first lesson

The statements as a lender reads them: where the cash really comes from, which EBITDA to believe, and what sits outside the debt line but still has to be paid.

BBasic3 lessons

  1. 1The three statements through a lender's eyesAn equity investor starts with growth and margins. A lender starts with cash: how much comes in, what it must pay, and what is owed ahead of it.9 min
  2. 2EBITDA and its adjustmentsProEvery loan is sized on EBITDA, so every borrower wants a bigger one. A lender's job is to know which additions are real.10 min
  3. 3Working capital and the cash conversion cycleProReceivables and inventory are cash the company has spent but not yet got back. The longer the cycle, the more of a lender's money is tied up in it.9 min
  4. QBasic quizPro10 questions, 80% passes

AAdvanced4 lessons

  1. 4From EBITDA to free cash flow for debt serviceProThe walk every credit model starts with: take EBITDA, subtract every cash claim that comes before the lender's principal, and see what is left.11 min
  2. 5Debt-like itemsProSome claims are not called debt but behave like it. A lender who only counts the loans will understate what the company owes.10 min
  3. 6Reading a compliance certificateProEach quarter the borrower's CFO signs a page that says whether the covenants were met. The answer depends on a reconciliation most people never check.11 min
  4. 7Revenue recognition and accounting red flagsProMost borrowers report honestly. The ones that do not usually leave tracks in receivables, capitalized costs, and reserves.10 min
  5. QAdvanced quizPro10 questions, 80% passes