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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

Lending to recurring revenue companies

Some software companies borrow before they make money. The loan is sized on recurring revenue, protected by retention and liquidity, and expected to convert to an EBITDA test later.

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