Loan and Grant Negotiation Skills
Officers responsible for negotiating grants and loans from various funding bodies often feel confronted by a stone wall—the funder’s restrictions (restrictive covenants) on the organization to ensure repayment. While the ultimate objectives are easily understood (getting the least expensive funds under the fewest restrictions), achieving them is not. Since the first caveman loaned a spear to a friend only to have it returned the next day broken into little pieces, lenders have been cautious in dealing with borrowers. Moreover, lenders know they have a certain power over borrowers and have turned it into a mystique. Unlike the case in other contract negotiations, many borrowers feel they have few, if any, cards to play—that is, they have to take most of what the banker decides to dish out.
At the same time business and individuals are confronted with an increasingly sophisticated range of loan products, negotiation and evaluation skills become more important. Improvements in this area can significantly reduce future debt service costs, as well as ensure that new loans are contracted within the context of the organisation’s overall debt strategy. The tightening of credit markets has reduced the borrowing options available to different lending and borrowing institutions.
This training offered by ATI will build the analytical skills of participants to enable them to evaluate different financing options and empower them to select and negotiate the most appropriate terms. Loan structuring, documentation, pricing and early problem identification. The lending process provides guidance on loan structuring and documentation issues in response to the analysis of the quantitative and qualitative risks, including loan agreements and covenants, as well as negotiating, pricing and evaluation.
This course is aimed at a wide range of professional functions and the corporate finance areas; procurement, administration, legal, commercial and/or Business bankers and Credit Analysts, individuals who would benefit from an understanding of financial markets, participants and products and how they interact together.
Upon completing this workshop, the delegates should be able to:
- Develop a critical understanding of different loans available and used as financing instruments by different market participants.
- Critically analyse and evaluate the role of risk management, loan performance analysis, funding and portfolio management strategies.
- Show in-depth knowledge of the legal rules on market manipulation, together with an understanding of the underlying policy considerations and global trends
- Apply best practice principles in market dynamics and how these affect the terms of different loans, financial evaluation techniques and make lending recommendations
- Examine loan contracts and understand their structure and different clauses, evaluate the impact of different financing options on the organisation’s debt portfolio, in line with a borrowing strategy
- Enter into negotiations with improved skills to achieve efficient use of resources
- Demonstrate familiarity with the global negotiating environment and describe the main characteristics of international financial markets and financial flows.
- Recognize the source of funds caters to a particular purpose