Lending: How to spot a Loan Defaulting before the Payments are Late Webinar
Time: 10:00 AM PST, 01:00 PM EST
Duration: 60 Minutes
Instructor: Alex Kwechansky
Companies with loans will, if deemed necessary, provide false and misleading information to their lenders when the period results are reported. This fraud of survival occurs when the borrower fears their loan will be called, limited or access to credit will be cut off. The annual or semi-annual audits rarely report weak underpinnings either in detail or in a timely fashion. Often these audits are prepared by the most budget focused, least experienced auditors. Company executive management, especially in closely held companies, is quietly aware of what data the auditor requests and how to manipulate it. Executive management is intimately aware of how their company functions on a day-to-day basis and has the access and authority to mislead the lender.
Why Should you Attend
Companies behave in various manners depending on situations. The accounting records can readily be manipulated and are reported after the fact. It is not uncommon for financial transactions to be untraceable or disguised or artificially enhanced to mitigate the perceived risk. The lender or capital investor can use the techniques to be taught in this webinar to ask the questions and gain the information that reveals the decisions and changes in behavior that better and timelier exposes the reality.
Objectives of the Presentation:
- Provide points of questions to pose to the borrower
- This will be presented in a loan compliance format and not attempt to suggest lender management
- Management´s manipulative decisions are often imposed in a crisis mode. Time and planning is not on their side. Guidance to recognize such abrupt movements will be provided
- Different industries involve different techniques. Manufacturing, retail and service companies will be highlighted. Changes may be offered if attendees bring specific situations at least one day prior to the webinar
- How to recognize behavior to anticipate a borrower performance problem or to present an opportunity for the lender
- How to recognize personal conflicts of interest and other situations that directly involve the executive management which may contribute to sudden operation changes
- Going beyond the accounting records, the CFO and the accountant