By Lisa Hochgraf
When credit unions talk about stress tests, they're often referring to asset/liability modeling in which they enter various interest rate scenarios and look at how that will affect their financials.
When Jim Devine talks about stress tests, he is referring to modeling a business' future cash flow, so a credit union can get a read on whether a business borrower is likely to have the cash needed to make timely payments on a loan.
CEO of Hipereon Inc., Redmond, Wash., Devine dove into the details of critical cash elements for businesses, and cash flow analysis, during the CUES School of Business Lending III, being held near Chicago this week.
You can read more coverage of this week's school here, and sign up for future schools here.
Lisa Hochgraf is a CUES editor.
