Bank Loan and Debt

Corporation, Merger & Acquisition, and

Managing Subsidiaries
Loan Principle, Related Cost and
Collateral
Income Statement
FINANCIAL
(Laporan Laba Rugi)
STATEMENTS
Balance Sheet (Neraca) The product of Financial Accounting

Statement of Cash Flows

(Laporan Arus Kas)

Statement of Changes in Owners’ Equity

(Laporan Perubahan Ekuitas)

Notes to Financial Statements

(Catatan atas Laporan Keuangan)
 balance sheet Covenants
uses of fund sources of fund

assets liabilities
Operating CFs current assets current liabilities
Projected • cash Operating
Cash Flows • account receivables = d WC
• inventory

fixed assets long term liabilities

Investing • accumulated depreciation equity Financing
(Capex) paid in capital
retained earnings = Cost of Capital
= Required
Rate of Return Lowest WACC

Operating Cost Mix

Profitability
Copy ♥ 2015 Prasetiya Mulya Business School
 Daftar Suku Bunga Acuan BI
19-Jul-18 5.25% Kamis, 17 Desember 2015 7,50% 11 Desember 2012 5.75% 4 Desember 2008 9.25%
29-Jun-18 5.25% Selasa, 17 November 2015 7,50% 8 Nopember 2012 5.75% 6 Nopember 2008 9.50%
30-May-18 4.75% kamis, 15 Oktober 2015 7,50% 11 Oktober 2012 5.75% 7 Oktober 2008 9.50%
17-May-18 4.50% Kamis, 17 September 2015 7,50% 13-Sep-12 5.75% 4-Sep-08 9.25%
19-Apr-18 4.25% Selasa, 18 Agustus 2015 7,50% 9 Agustus 2012 5.75% 5 Agustus 2008 9.00%
22-Mar-18 4.25% Selasa, 14 Juli 2015 7,50% 12 Juli 2012 5.75% 3 Juli 2008 8.75%
15-Feb-18 4.25% Kamis, 18 Juni 2015 7,50% 12 Juni 2012 5.75% 5 Juni 2008 8.50%
18-Jan-18 4.25% Selasa, 19 Mei 2015 7,50% 10 Mei 2012 5.75% 6 Mei 2008 8.25%
Selasa, 14 April 2015 7,50% 12-Apr-12 5.75% 3-Apr-08 8.00%
14-Dec-17 4.25% Selasa, 17 Maret 2015 7,50% 8 Maret 2012 5.75% 6 Maret 2008 8.00%
16-Nov-17 4.25% Selasa, 17 Februari 2015 7,50% 9 Februari 2012 5.75% 6 Februari 2008 8.00%
19-Oct-17 4.25% Kamis, 15 Januari 2015 7,75% 12 Januari 2012 6.00% 8 Januari 2008 8.00%
22-Sep-17 4.25%
22-Aug-17 4.50% Kamis, 11 Desember 2014 7,75% 8 Desember 2011 6.00% 6 Nopember 2007 8.25%
20-Jul-17 4.75% Selasa, 18 November 2014 7,75% 10 Nopember 2011 6.00% 8 Oktober 2007 8.25%
15-Jun-17 4.75% Selasa, 7 Oktober 2014 7,50% 11 Oktober 2011 6.50% 6-Sep-07 8.25%
18-May-17 4.75% Kamis, 11 September 2014 7,50% 8-Sep-11 6.75% 7 Agustus 2007 8.25%
20-Apr-17 4.75% Kamis, 14 Agustus 2014 7,50% 9 Agustus 2011 6.75% 5 Juli 2007 8.25%
16-Mar-17 4.75% Kamis, 10 Juli 2014 7,50% 12 Juli 2011 6.75% 7 Juni 2007 8.50%
16-Feb-17 4.75% Kamis, 12 Juni 2014 7.50% 9 Juni 2011 6.75% 8 Mei 2007 8.75%
19-Jan-17 4.75% Kamis, 8 Mei 2014 7.50% 12 Mei 2011 6.75% 5-Apr-07 9.00%
Selasa, 8 April 2014 7.50% 12-Apr-11 6.75% 6 Maret 2007 9.00%
15-Dec-16 4.75% Kamis, 13 Maret 2014 7.50% 4 Maret 2011 6.75% 6 Februari 2007 9.25%
17-Nov-16 4.75% Kamis, 13 Februari 2014 7.50% 4 Februari 2011 6.75% 4 Januari 2007 9.50%
20-Oct-16 4.75% Kamis, 9 Januari 2014 7.50% 5 Januari 2011 6.50%
22-Sep-16 5.00% 7 Desember 2006 9.75%
19-Aug-16 5.25% 12 Desember 2013 7.50% 3 Desember 2010 6.50% 7 Nopember 2006 10.25%
21-Jul-16 5.25% 12 Nopember 2013 7.50% 4 Nopember 2010 6.50% 5 Oktober 2006 10.75%
16-Jun-16 5.25% 8 Oktober 2013 7.25% 5 Oktober 2010 6.50% 5-Sep-06 11.25%
19-May-16 5.50% 12-Sep-13 7.25% 3-Sep-10 6.50% 8 Agustus 2006 11.75%
21-Apr-16 5.50% 29 Agustus 2013 7.00% 4 Agustus 2010 6.50% 6 Juli 2006 12.25%
Kamis, 17 Maret 2016 6.75% 15 Agustus 2013 6.50% 5 Juli 2010 6.50% 6 Juni 2006 12.50%
Kamis, 18 February 2016 7.00% 11 Juli 2013 6.50% 3 Juni 2010 6.50% 9 Mei 2006 12.50%
Kamis, 14 January 2016 7.25% 13 Juni 2013 6.00% 5 Mei 2010 6.50% 5-Apr-06 12.75%
14 Mei 2013 5.75% 6-Apr-10 6.50% 7 Maret 2006 12.75%
11-Apr-13 5.75% 4 Maret 2010 6.50% 7 Februari 2006 12.75%
7 Maret 2013 5.75% 4 Februari 2010 6.50% 9 Januari 2006 12.75%
12 Februari 2013 5.75% 6 Januari 2010 6.50%
10 Januari 2013 5.75% 6 Desember 2005 12.75%
3 Desember 2009 6.50% 1 Nopember 2005 12.25%
4 Nopember 2009 6.50% 4 Oktober 2005 11.00%
5 Oktober 2009 6.50% 6-Sep-05 10.00%
3-Sep-09 6.50% 9 Agustus 2005 8.75%
5 Agustus 2009 6.50% 5 Juli 2005 8.50%
3 Juli 2009 6.75%
3 Juni 2009 7.00%
5 Mei 2009 7.25%
3-Apr-09 7.50%
4 Maret 2009 7.75%
 16-6

Kredit dan tujuannya

• Kredit merupakan sumber penghasilan utama sebagian besar bank
• Unsur utama kredit: waktu, resiko, dan bunga

Masalah inti dari Kredit:

• Terbesar dalam neraca
• Kontribusi terbesar dalam penghasilan bank
• Resiko yang dikandung sangat besar

Tujuan Kredit:
• Profitabilty
• Safety
• Kontribusi bank dalam pembangunan
 16-8

Jenis-Jenis Kredit
Dari tujuannya:
• Kredit konsumtif
• Kredit produktif (Kredit Modal kerja, Kredit Investasi)

Dari jangka waktu:

• Short-term kredit ( s/d 1 tahun)
• Intermediate term kredit ( 1 – 3 tahun)
• Long term kredit ( > 3 tahun)
• Demand Loan (setiap waktu dapat diminta kembali)
 16-9

Loan: Risk Management

 16-10

Kualitas Kredit
Collectibility dinyatakan dalam 5 tingkatan:

• Lancar , PPAP 1%
• Dalam Perhatian Khusus (tunggakan angsuran dan atau pokok <90 hari), PPAP 5%
• Kurang Lancar (tunggakan >90 hari – 180 hari), PPAP 15%
• Diragukan (tunggakan > 180 hari – 270 hari), PPAP 50%
• Macet (tunggakan > 270 hari, PPAP 100%

• PPAP = Cadangan Penurunan Nilai Kredit

 Credit Analysis: What Makes a Good Loan?
1. Is the Borrower Creditworthy? The Cs of Credit (6Cs)
▫ Character
▫ Specific purpose of loan and serious intent to repay the loan
▫ Capacity
▫ Legal authority to sign binding contract
▫ Cash
▫ Ability to generate enough cash to repay loan
▫ Collateral
▫ Adequate assets to support the loan
▫ Conditions
▫ Economic conditions faced by borrower
▫ Control
▫ Does loan meet written loan policy and how would loan be affected by
changing laws and regulations
 Credit Analysis: What Makes a Good Loan?
(continued)
2. Can the Loan Agreement Be Properly Structured and
Documented?
▫ This requires drafting a loan agreement that meets the borrower’s
need for funds with a comfortable repayment schedule
▫ If a major borrower gets into trouble because of an inability to
service a loan, the lending institution may find itself in trouble
▫ Proper accommodation of a customer may involve lending more or
less money than requested over a longer or shorter period
 Credit Analysis: What Makes a Good Loan?
(continued)
3. Can the Lender Perfect Its Claim against the Borrower’s
Earnings and Any Assets That May Be Pledged as Collateral?
– Reasons for Taking Collateral
▫ If the borrower cannot pay, the pledge of collateral gives the lender
the right to seize and sell those assets
▫ It gives the lender a psychological advantage over the borrower
– Types of Collateral
▫ Accounts Receivables
▫ Factoring
▫ Inventory
▫ Real Property
▫ Personal Property
▫ Personal Guarantees
Safety Zones Surrounding Funds Loaned in Order to Protect a
Lender
 16-15

Parts of a Typical Loan Agreement

• The Promissory Note

• Loan Commitment Agreement
• Collateral
• Covenants
– Affirmative
– Negative
• Borrower Guaranties and Warranties
• Events of Default
Commercial
Loans
 17-17

Short Term Business Loans

• Self-Liquidating Inventory Loans (Paid after cash received from sales)

• Working Capital Loans (seasonal peak period)
• Interim Construction Loans (paid off by long term mortgage loan)
• Security Dealer Financing (few nights to dealer, financing underwriter)
• Retailer and Equipment Financing (pay as sold)
• Asset-Based Financing (ex Factoring)
• Syndicated Loans (large, LIBOR base)
Copy ♥ 2010 Prasetiya Mulya Business School
 17-19

Long Term Business Loans

• Term Loans (> 1 year, secured by FA)

• Revolving Credit Lines (short to 5 years)
• Project Loans (most risky: large,weather/material, laws & regulation,
interest rate fluctuation)
• Loans to Support Acquisitions of Other Business Firms (i.e LBO)
 17-20

Sources of Repayment for

Business Loans
• The Borrower’s Profits or Cash Flows
• Business Assets Pledged as Collateral
• Strong Balance Sheet With Ample Marketable
Assets and Net Worth
• Guarantees Given By Businesses
 17-21

Analyzing Business Loan

Applications

• Common Size Ratios of Customer Over Time

• Financial Ratio Analysis of Customer’s Financial
Statements
• Current and Pro Forma Cash Flow Statement
 17-22

Financial Ratio Analysis

• Control Over Expenses
• Operating Efficiency
• Marketability of Product or Service
• Coverage Ratios: Measuring Adequacy of Earnings
• Liquidity Indicators for Business Customers
• Profitability Indicators
• The Financial Leverage Factor as a Barometer of a
Business Firm’s Capital Structure
 17-23

Types of Contingent Liabilities

• Guarantees or Warrantees Behind Products

• Litigation or Pending Lawsuits
• Unfunded Pension Liabilities
• Taxes Owed But Unpaid
 17-24

Component of Statement of Cash flows

• Cash Flows from Operations

• Cash Flows from Investing Activities
• Cash Flows from Financing Activities
 17-25

Methods Used to Price Business Loans

• Cost-Plus Loan Pricing Method

• Price Leadership Model
• Below Prime Market Pricing
• Customer Profitability Analysis
 17-26

Cost-Plus Loan Pricing

Marginal
Cost of Estimated
Nonfund Bank's
Loan Raising Margin to
Bank Desired
Interest = Loanable + + Compensate +
Operating Profit
Rate Funds to Bank for
Costs Margin
Lend to Default Risk
Borrower

Indonesia = ditambah cost of fund GWM

 17-27

Price Leadership Model

Default
Risk Term Risk
Loan
Base or Premium Premium for
Interest = + +
Prime Rate for Non- Longer
Rate
Prime Term Credit
Borrowers
 17-28

Prime Rate

Major Banks Established a Base Lending Fee During the Great

Depression. At that Time It Was the Lowest Interest Rate Charged
Their Most Credit Worthy Customers for Short-Term Working
Capital Loans
 17-29

LIBOR

The London Interbank Offer Rate. It is the average interest rate that
leading banks in London charge when lending to other banks

Asia: SIBOR

Indonesia: JIBOR
 17-30

Below-Prime Market Pricing

Interest Cost
Loan Markup
of Borrowing
Interest = + for Risk
in the Money
Rate and Profit
Market