Credit Analysis & Lending Series: Collateral Analysis: Evaluation, Weaknesses & Monitoring Values

Collateral is often viewed as the safety net for loans, but relying too heavily on it can lead to critical missteps. This session will delve into effective strategies for collateral analysis to help you evaluate collateral coverage beyond surface-level appraisals. Learn how to analyze different types of collateral — such as marketable securities, receivables, inventory, and real estate — and understand when collateral analysis should play a key role in your risk management approach. The program will focus on how to balance collateral evaluation with the borrower’s cash flow and capital strength, ensuring you use collateral as a backup rather than a primary means of repayment. With real-world examples and insights, you’ll be equipped to make informed decisions and avoid reliance on collateral as a crutch for poorly performing loans.