Unsecured Lending Analysis

Coming soon

Who benefits?

This course is designed for bankers and analysts who may be asked to consider an unsecured loan to an individual(s), particularly for high-net-worth clients in private banking. While unsecured financing is rare today, many clients, especially in the real estate sector, still request unsecured lines of credit to use like a large Visa card. The course is also beneficial for financial professionals who advise clients on borrowing decisions, including whether to pursue unsecured debt under specific circumstances. Additionally, those working in fintech companies considering offering unsecured debt products will gain valuable insights from this course to better understand the risks and opportunities involved in this type of lending.

Module 1: Understanding Unsecured Debt

  • Why would an unsecured line be needed?

    Identifying typical clients and scenarios for unsecured lending, with real-world examples.

Module 2: Aligning Repayment With Purpose

  • Removing the initial analytical aspect of purpose and repayment, then aligning repayment terms with the intended use.

Module 3: Assessing Term as it Relates to Risk

  • Exploring how the loan term impacts risk and the decision-making process.

Module 4: Evaluating Repayment Sources

  • Deep dive into repayment sources, including insights from historical tax returns and financial statements.

Module 5: Forces Impacting Repayment

  • Identifying internal and external factors that influence the client’s ability to repay.

Module 6: Offering Alternative Solutions

  • Alternatives to unsecured lending and how to handle rejection scenarios.

  • Role-playing examples on declining an unsecured line while maintaining strong client relationships.