Permanent Working Capital: How to Calculate, Finance and Mitigate Risk
About This Course
This course covers permanent working capital and its impacts on loan portfolios. Participants will gain an understanding of the specific risks related to PWC, how to calculate it, and how to address it. Loan structuring and monitoring techniques are key takeaways. This course is designed for credit professionals, lenders, and risk managers seeking to deepen their C&I analysis and lending experience.
Topics covered in this course
- What is it?
-
- Defining Permanent Working Capital (PWC)
- Why do we care?
-
- How PWC impacts borrowers and loan performance
- How do we calculate it?
-
- Methods for determining the presence and amount of PWC
- Where is the risk?
-
- Specific risks leading to increased probability of default
- How to finance it?
-
- Loan structures to finance Working Capital and PWC
- Examples
Who Should Attend
- Credit professionals
- Lenders
- Loan review officers
- Risk staff
*This course does NOT qualify, nor meet the National Standard for NASBA accreditation.
Your Instructor
Joe Davis has been in the banking industry for over 25 years, primarily in commercial credit and lending roles, including serving as Chief Credit Officer of a $1.2 billion community bank. Joe has extensive knowledge of credit analysis, portfolio monitoring, and risk management. Joe earned an MBA from University of Michigan-Flint, a BA in Economics from Michigan State University, and completed the Graduate School of Banking at Colorado.
This course is covered under team memberships.
See Team Memberships