Training Guide

Due Diligence in Lending Transactions


Training Guide

Due Diligence in Lending Transactions

Commercial Lending
Remote or in person

What’s Covered

  • Financial due diligence
  • Legal due diligence
  • Review of organizational documents 
  • Review of documents related to collateral
  • Identifying contingent liabilities 

Before the Session

Prepare the Attendees

Send the attendees an invitation for the session. Include this link, which has the videos and exercise they’ll need to prepare.

Prepare Yourself

Watch the videos and read the exercise so you’re familiar with the Hotshot material.

During the Session

Part 1: Knowledge Check
Ask attendees these questions to ensure they understand the topic:
  • In a loan transaction, who assists the lender in conducting the financial due diligence to confirm that the borrower is in good financial condition? What do they look through? 
  • What documents are generally reviewed during legal due diligence? 
  • When does due diligence typically end? 
  • What are the main organizational documents reviewed by the lender in a loan transaction?
  • Why does the lender in a secured loan transaction perform due diligence on the assets being pledged as collateral?
  • What other items, besides the organizational documents and documents related to the pledged collateral, are sometimes reviewed? Why? 
 Part 2: Group Exercise

Lead a group discussion based on the exercise. To encourage collaboration, divide the attendees into groups to discuss the exercise, then have a representative from each group summarize their views to the larger group. Call on people to share their thoughts and ask others to respond.
Tip for remote sessions: use your web conferencing system’s breakout room feature to divide people into groups.
Part 3: War Stories and Firm Specifics
Share your own experiences and guidance, including:
  • Anecdotes and war stories (e.g., about a near-disaster or a tough negotiation)
  • General practice tips (dos and don’ts)
  • Firm-specific guidance and practices 

After the Session

To continue their learning, attendees can check out related courses in Hotshot’s Commercial Lending topic.

About Hotshot

Hotshot helps lawyers develop their legal, business, and technology skills through short videos, quizzes, and summaries, and we help law firms and law schools plan and deliver engaging training programs. Our customers include Am Law 200 firms, top law schools, and regional and international firms.

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