1. Understanding the Product

a) Cash flow cycle for typical asset-based or factoring borrower

b) Asset-based lending

i) How does it work?
ii) What kind of borrower uses this method of financing?
iii) How will an asset-based loan facility solve this borrower's cash flow problems?

c) Factoring

i) How does it work?
ii) How does it differ from asset-based lending?
iii) What kind of borrower uses this method of financing?
iv) How will a factoring arrangement solve this borrower's cash flow problems?

2. Basic Credit Skills

a) Evaluating the collateral

i) Identifying the categories of collateral
1) Factoring Perspective
2) Asset-based Lending Perspective

ii) Reading and understanding the agings
1 ) Factoring Perspective

3. Asset-based Lending Perspective

a) Evaluating the prospect's financial statements

i) What do the financial statements say?
1) Factoring Perspective
2) Asset-based Lending Perspective

ii) What questions do they raise?
1) Factoring Perspective

4. Due Diligence

a) Preliminary evaluation of a potential borrower

i) Is this a deal or isn't it?
[Tie in with basic credit skills segment.]

ii) Is this the type of borrower we are looking for?
1) Factoring Perspective
2) Asset-based Lending Perspective

iii) What type of financing would work best for this borrower?

b) Due diligence review prior to issuing a proposal or commitment

i) What information makes up a loan package?
1) Factoring Perspective
2) Asset-based Lending Perspective

ii) How is that information obtained?

c) Overview of due diligence review prior to closing

i) Credit due diligence
1) Factoring Perspective
2) Asset-based Lending Perspective

ii) Legal due diligence
1) Factoring Perspective
2) Asset-based Lending Perspective

5. Salesmanship

a) How to work with a referral source

b) How to work with the prospect itself

i) Identifying the prospect's needs
1) Factoring Perspective
2) Asset-based Lending Perspective

ii) Identifying and addressing the prospect's concerns about the financing being offered
1) Factoring Perspective
2) Asset-based Lending Perspective

iii) Identifying and addressing the prospect's concerns about your organization as lender

iv) Understanding and addressing the competition for this loan
1) Factoring Perspective
2) Asset-based Lending Perspective

c) How to say "no" without burning bridges

6. Operations

a) Monitoring the collateral and the borrowing base

i) Asset-based lending
ii) Factoring

b) Verification of receivables

i) Asset-based lending
ii) Factoring

c) Cash management

i) Blocked accounts
ii) Lock boxes

d) Field audits

i) Asset-based lending
ii) Factoring

7. Enforcement – Introduction to the basic concepts

a) Default
b) Forbearance
c) Workout
d) Foreclosure and liquidation
e) Bankruptcy