Business loans are a vital source of funding for cash flow management. The course begins with ratio analysis and cash flow projections to determine whether loan funding is needed. I then explain how leverage (the use of borrowed funds) magnifies returns but increases risk.

We then explore key loan components like different ways interest is calculated, types of fees, and the multiple terms that can be structured into a loan. Basic accounting entries and financial statement presentation, including footnote disclosure, are explained.

You’ll discover ways to reduce the interest rate on your loan. I give an overview of the application process and the documents lenders frequently request.

The course explains the factors and ratios banks used to decide whether to approve a loan. Key documents that are signed at loan closing are described, and the importance of each is explained. I’ll point out important clauses included in these documents.

The author has 20 years of banking experience, including being CFO of two banks, sitting on loan committees, and having a collections department report to him. He provides insights into how banks operate, key terms borrower miss, and tips to protect you or your client’s business.

Course Key Concept: Business loans, loan documents, loan accounting, loan documents, loan terms, loan fees, working capital, cash flow projection

Note: This course is also available in Text-Based format.

Learning Objectives
  • Explore different types of business loans.
  • Recognize key loan terms and their definitions.
  • Identify key loan documents.
  • Discover loan accounting and financial statement presentation.
Last updated/reviewed: January 8, 2023
14 Reviews (53 ratings)


Member's Profile
I'm giving this 5 stars because I think as beginner's content this was great. The slides made it easy to pass the exam and were a good refresher. However, this is definitely a very basic course as the title suggests. I was hoping it might help me understand what banks are looking for when issuing loans to companies but it was more about the basics.

Member's Profile
I found this course to be extremely informative. The instructor shared a lot of valuable information about banking basics. I enjoyed the course thoroughly and would highly recommend it to others.

Anonymous Author
Course really held my interest. Gave me insight since I'm in the process of staring a small business and was considering if I needed to take out a small business loan.

Anonymous Author
Great class for an introduction to business loans. Very knowledgeable instructor and lots of great information in the slides.

Anonymous Author
Really good content! Unfortunately the monotonous presentation tone made it very hard to concentrate.

Member's Profile
Good overview of the sources of loans, types of lenders, application process and loan documents

Anonymous Author
great presentation, easy to follow and was 'dumbed' down just enough for layman to understand

Anonymous Author
Provides a lot of information and helps a lot with explaining the loan procedures.

Member's Profile
Useful information, well-explained course, helpful in dealing with banks.

Anonymous Author
Instructor is effective and organized. This course is a good refresher.

Anonymous Author
Really well presented, at a good pace and appropriate level of detail.

Anonymous Author
The slides were presented well and were easy to follow.

Anonymous Author
interesting and well structured course learned a lot.

Anonymous Author
Good refresher on loan basics. Enjoyed this course.

Course Complexity:

No advanced preparation or prerequisites are required for this course.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
  Introduction to Business Loan Basics2:47
  When to Get a Loan9:23
  Cash Flow Projection8:34
  Leverage and Profitability6:39
  Where Businesses Get Loans7:27
Loan Terms, Interest and Fees
  Principal and Interest8:14
  Loan Terms7:36
  Types of Business Loans8:11
  The Application Process13:38
Getting Best Pricing and Application Procedure
  Getting The Best Loan Pricing4:17
  Loan Documents5:16
  Financial Statement Presentation7:36
  Business Loan Basics1:45:27
  Slides: Business Loan BasicsPDF
  Business Loan Basics Glossary/ IndexPDF
  Cash Flow Projection - Business Loan BasicsPDF