Cash Flow Seminar

Cash Flow Lending — Principles & Practice

Advances in Cash Flow Lending based on Sustainable Cycles


There are two objectives of the book and the seminar:

  1. Better Credit

    Cash Flow 3.0 is a framework for cash flow lending that sharpens the measurement of debt repayment by pinpointing the cash flow that should repay a loan within its natural cycle (new primary coverage ratios). Traditional ratios like the long-term Debt Service Coverage Ratio (DSCR) and the flawed Current Ratio are less precise because they include cash that flows from other cycles. Analyzing how cash flows between cycles explains how AT&T pays its creditors despite a multi-billion dollar negative working capital–cross-cycle repayment; while cross-cycle financing answers persistent questions like “Can a term loan be made to finance a permanent increase in working capital?”

    But the ultimate objective of cash flow analysis is to identify and resolve cash flow problems, and craft a long-term strategy for financing sustainable growth—the mutual objective of both lender and borrower.

Which brings us to sales:

  1. Better Sales

    Viewing cash flow in terms of recurring cycles is so logical, so intuitive, that even junior lenders with limited accounting skills can discuss with SME clients (and sell) a “strategy for financing growth” tailored to the SME’s particular needs. When relationship officers are empowered to explain the what and why of the strategy, they become valued financial advisors—the “value added” that SMEs look for in selecting their bank.


Cash Flow 3.0 presents a new framework with surprising revelations that are provocative for even the most senior bankers, accountants, and professors. Yet the principles are easy to follow and are presented such that junior lenders will be empowered with new tools and techniques that they can use immediately.


All participants receive a copy of the book (far more useful than power-point printouts!)

Duration / Content

A complete training seminar covers the main topics from the book and should be three-days to allow class participation. Shorter intense sessions may be structured, for example, for a small group of experienced credit officers.