Whether you are a personal lender, private banker or a commercial lender, you will have a frequent need to evaluate personal financial statements and accompanying tax returns. These evaluations are done to assist in determining cash flow available to service personal debt and the ability to support a personal guarantee. In the past, evaluation of personal financials/tax returns was often limited to a simple review of borrower net worth. Today’s lending environment requires a far more rigorous approach.

What you will learn:
The course begins with a review of the structure and purpose of personal financial statements and evolves through adjusting net worth and determining personal liquidity. This is followed by a review of personal tax returns, which when coupled with personal financials, enables the lender to construct personal cash flows. Since the personal and business affairs of many business owners are closely related, the course will end with a demonstration of and evaluation of global cash flows.

Other topics addressed:
• What does adjusted gross income (AGI) really mean?
• What is personal liquidity and solvency?
• How does marketability relate to liquidity and solvency?
• Analyzing personal income and 1040 reported income
• Relating income to asset acquisition
• Determining true net worth
• Relating personal financial information to LLPs, LLCs and
S-corps
• Validating personal income information
• Case studies

Who should attend:
Personal bankers, business/commercial lenders, private
bankers, credit analysts, branch managers and real estate
lenders.

Speaker:
Gary Maples, River Edge Consulting, LLC

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