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Learn/Credit analysis in depth
LearnCredit analysis in depth

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B Basic

  • Business risk before ratios9m
  • Ratios beyond leverage and coveragePro9m
  • Sizing a loan from three testsPro10m

A Advanced

  • Stress tests: rates, earnings, and both at oncePro10m
  • Lending to recurring revenue companiesPro10m
  • Asset based lending and the borrowing basePro11m
  • Pricing and risk adjusted returnPro11m
  • FlashcardsPro0/14
  • Basic quizPro80% passes
  • Advanced quizPro80% passes
  • Terms

Asset based lending and the borrowing base

An asset based loan is sized on what the lender could collect from receivables and inventory, recalculated every month. The cash flow matters less; the collateral matters more.

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