Financial Modeling for Credit Professionals


This course focuses on the design and creation of an interactive financial model for a company with the purpose of analyzing credit capacity and impact of debt. Course concepts include model design, logic, construction, financial concepts and accounting treatment. Participants will build a model that includes a forecast of a company’s income statement, cash flow statement and balance sheet. Participants will recapitalize a company’s balance sheet and then forecast specific pieces of debt and equity so that the model can be used for credit purposes or as an LBO model.


Participants should have a good working knowledge of Excel and financial modeling prior to taking this course.


8 - 16 hours, depending on the amount of material to be covered.

Learning Topics

Design and Structure a Financial Model

  • Design a clear and logical financial model
  • Discuss the need for a model to serve as a marketing tool
  • Create clearly defined inputs and assumptions
  • Connect strings of data to create assumptions and footnotes

Build Powerful Scenarios and Financial Statements

  • Use switches to create effective scenarios and value drivers
  • Design and incorporate a company’s income statement, balance sheet and cash flow statement
  • Construct all necessary schedules

Model a Company’s Capital Structure

  • Build a Sources and Uses schedule in a model
  • Recapitalize a company’s balance sheet
  • Properly incorporate Senior Term Debt
  • Create a robust bank operating line (or revolving credit facility) with a cash sweep
  • Incorporate a variable interest rates based on pricing grids
  • Build a provision for non-cash Payment in Kind (“PIK”) interest on various pieces of debt
  • Create a well-designed shareholders’ equity schedule
  • Properly forecast the company’s balance sheet
  • Understand model circularity
  • Learn to create a “circular reference breaker” to rid a model of undesirable error messages when the model crashes
  • Understand and insert operating and credit ratios
Download a one-page course summary
Download Now