Banking experts review, simplify corporate lending process. James S. Sagner and Herbert Jacobs advise on corporate lending to help bankers, lenders and corporate finance managers avoid future credit problems in Handbook of Corporate Lending: A Guide for Bankers and Financial Managers. The authors argue for a fresh approach to improving bank lending to corporations. Historically, most banks spend their efforts in evaluating loan proposals from businesses before approving or denying credit. The authors argue persuasively and with examples that lending is a two-step process: the analysis of the company in the context of its industry and its competitors; and then a loan agreement that identifies the credit risks. The book demonstrates through the use of case studies how to limit those risks to the lenders and just as importantly, to the company. Sagner and Jacobs, former senior bankers and consultants and educators to the banking industry, systematically review the process of corporate credit decision-making. Too few banks are w providing adequate formal credit-training. This leaves bankers without the proper guidance to review credit requests and create precautions for corporate borrowers and lenders. Sagner and Jacobs show readers how such factors influence credit, funding, pricing decisions and proper structuring of loans. The book covers such topics as trends in commercial loan activity, the credit loan agreement, the banker's responsibilities, risk management measurement and the credit process. Eight cases in the book highlight a variety of credit issues. The book is written from the perspective of the banker or other lender who makes these important decisions, said Sagner. But business people, particularly global financial managers who must secure credit and maintain excellent relations with their lenders, need to understand this important information. Sagner and Jacobs help readers navigate the issues confronting financial and banking managers. The book aims to explain the financial processes lenders use to make decisions, and to analyze the strengths and weaknesses of credit measurements so that business and financial managers are better prepared to arrange credit facilities.
The authors are James Sagner, PhD and Herbert Jacobs, both of whom reside and work in the New York City area. Former bankers, they are the principals of Bank Credit Training Partners, a firm that specializes in providing credit training seminars to bankers and corporate financial managers. Sagner teaches MBA and executive education at the Universities of Bridgeport and North Carolina. He led the Consulting Services Division of the First National Bank of Chicago (now J.P. Morgan Chase), and has managed over 250 large-scale studies for companies and non-profit organizations worldwide. He is recognized as an expert in financial management and his clients have included leading insurance companies, securities firms, finance companies, banks, hospitals, manufacturing companies and service organizations. Most recently, he was the author of Essentials of Working Capital Management (Wiley, 2010). He has written six other books in finance and economics. He speaks regularly at professional conferences and has published some fifty papers and articles. Jacobs is a consultant to the banking industry and an Adjunct Professor at New York University, teaching graduate courses in financial statement analysis, term lending and negotiating loan agreements. He was the General Manager of DEPFA Bank, and previously was Senior Analyst and Manager in Security Valuation Office of N.A.I.C. and a Senior Vice President of HSBC. During his tenure with these institutions, he served on various credit committees and ran credit training programs in the U.S. and Europe.