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Loan Documentation
Business Issue - Once a loan decision has been made, the lender’s ability to collect on that loan may rest on the accuracy and completeness of the loan documentation.
Omega Performance’s Solution - Loan Documentation teaches lenders how and why to choose and prepare accurate, comprehensive loan documents. Participants also learn to use documentation checklists to assist them in choosing documents for new loans and in diagnosing documentation errors in existing loans.
What Is Included
The Loan Documentation training program consists of a single self-study module and is generally accompanied by a workshop. Loan Documentation teaches participants how to select and prepare loan documents based on the agreements between borrower and lender.
The self-study module includes the following four units:
Unit 1: Signing Capacity and Authority addresses signature requirements. The requirements differ depending on the type of business organization to which the loan will be made. Samples of appropriate signature formats are provided for each business type.
Unit 2: Basic Documentation presents the most common forms of basic documentation including notes, borrowing resolutions and disclosure statements. Participants learn when and why each document is needed.
Unit 3: Supporting and Specialized Documentation discusses supporting and specialized documents such as guaranties, security agreements and loan agreements. This unit is divided into five sections:
- Section 1: Informational Documents, Letters and Loan Agreements
- Section 2: Guaranties and Subordinations
- Section 3: Secured Transactions
- Section 4: Special Documentation
- Section 5: Common Documentation Problems
Unit 4: Documentation for Specific Loan Types provides a series of checklists of the documentation required for specific loan types.
Delivery Options
To effectively implement Loan Documentation, Omega Performance recommends one of three approaches: self-study only, self-study with mentor, or self-study with workshop.
Results You Can Expect
Loan Documentation helps you and your lenders:
- Improve loan quality through more accurate and effective loan documentation
- Reduce risk through a better understanding of the "whys" behind the choice of loan documents
- Identify situations in which loan documentation must be tailored in order to fully capture the loan agreement
Who Should Be Trained
Loan Documentation is recommended for:
- Entry-level lenders and analysts with commercial lending backgrounds
- Experienced lenders who need a documentation refresher
- MBA new hires
- Documentation specialists, loan assistants and others who assist the lender in preparing loan documents and obtaining borrowers’ signatures on documents
Prerequisites
To get the greatest benefit from the Loan Documentation seminar, lenders and potential lenders should have an understanding of loan structure and of the terminology used in discussing loan structure provided in Omega Performance’s Commercial Loans to Business or Commercial Loans to Small Business or their equivalent. Those who assist lenders in preparing documents and obtaining borrowers’ signatures on loan documents, but do not make the choice of documents, will benefit from Loan Documentation, even with only a general knowledge of the lending process.