How Tariffs Impact a Borrower's Ability to Repay

Overview

Tariffs can have significant direct and indirect effects on businesses and consumers, influencing costs, profitability, cash flow, and overall financial stability. For lenders, understanding how tariffs affect a borrower's repayment capacity is critical for effective credit risk assessment and portfolio management.

This webinar explores the relationship between tariffs and borrower performance, examining how increased import costs, supply chain disruptions, inflationary pressures, and market uncertainty can impact cash flow and debt servicing ability. Participants will learn practical approaches for evaluating tariff-related risks and incorporating these considerations into lending and credit decisions.

Why You Should Attend

• Understand how tariffs influence borrower financial health.

• Learn to identify industries most vulnerable to tariff exposure.

• Assess the impact of tariffs on cash flow and profitability.

• Strengthen credit risk evaluation and underwriting processes.

• Improve borrower monitoring and portfolio management strategies.

• Recognize early warning signs of tariff-related financial stress.

• Enhance loan review and risk mitigation practices.

• Gain insights into current economic and trade-related challenges.

• Make more informed lending and credit decisions.

Who Will Benefit

• Commercial and consumer lenders

• Credit analysts and underwriters

• Loan officers and relationship managers

• Credit risk and portfolio managers

• Banking and financial services professionals

• Compliance and risk management personnel

• Financial analysts and consultants

• Business bankers and commercial finance professionals

• Anyone involved in evaluating borrower repayment capacity

Areas Covered in the Session

• Understanding Tariffs and Their Economic Impact

• How Tariffs Affect Business Costs and Profit Margins

• Supply Chain Disruptions and Operational Challenges

• Impact of Tariffs on Consumer Spending and Demand

• Cash Flow Implications for Borrowers

• Assessing Industry-Specific Tariff Exposure

• Evaluating Borrower Financial Statements for Tariff Risk

• Identifying Early Warning Signs of Financial Stress

• Effects on Working Capital and Liquidity

• Impact on Debt Service Coverage and Repayment Capacity

• Credit Underwriting Considerations in a Tariff Environment

• Portfolio Monitoring and Risk Management Strategies

• Stress Testing Borrowers for Tariff-Related Scenarios

• Mitigation Techniques for Lenders and Borrowers

• Case Studies of Tariff-Driven Credit Challenges

• Best Practices for Ongoing Borrower Risk Assessment