Commercial Banking- Debt Modeling

Commercial Banking- Debt Modeling
Corporate Finance Institute (CFI) on-demand courses are designed for finance professionals and industry practitioners who want to master the art of corporate finance. The courses move through three levels of mastery for anyone looking to be an expert in financial modeling, valuation, and financial analysis. Participants typically include professionals in entry to mid-level positions in financial planning and analysis (FP&A), corporate development, treasury, investor relations, and capital markets. All participants are automatically issued certificates of completion after successfully finishing each course.

NOTE: Course login details are normally sent to registrants within one week from date of registration.


This course covers the key components of building a debt model that is commonly used by commercial banks in assessing a borrower’s cash flows and performing covenant analysis. In this course, we will discuss the differences between operating finance (operating line of credit) and term lending (term loans). We will walk through the major components of a debt model including the yearly debt schedules, covenant analysis, monthly operating line analysis, as well as a quick overview of a risk rating model. By the end of this course, you should be able to construct a fully-linked debt model which entails the cash flow forecast of a borrower, its debt capacity, the impact of cash sweep, as well as any early warning signs of covenant breach.


  • Differentiate between operating finance (operating line of credit) and term lending (term loans
  • Understand the benefits of using different types of credit facilities
  • Build a yearly debt schedule laying out the different types of debt drawn, the interest expense, and the principal repayments
  • Perform covenant analysis to identify early warning signs and possibilities of breach
  • Construct a monthly operating line analysis to determine the operating line drawn and amount available based on margining
  • Understand how the amount of leverage could impact a company’s risk rating
CPD- 3 Hours
4/1/2022 - 3/31/2023 11:59 PM