NACM CMC study plan
NACM CMC · Give each week a clear focus.
8 weeks · About 7 hours per week
Business Credit and Financial Management Fundamentals & Financial Statement Analysis
Define the five Cs of credit and map each one to the specific evidence a credit analyst would collect
Build a personal glossary of 40 core credit and financial-management terms (liquidity, leverage, coverage, working capital, DSO, DPO, aging, dilution, UCC filing, guaranty) with a one-sentence definition for each
Reconstruct the three financial statements from a blank page and explain how each line flows into the next statement
Compute the current ratio, quick ratio, debt-to-equity, and interest coverage from a set of figures you enter yourself, and label each as liquidity, leverage, or coverage
Your checkpoint
A 40-term glossary plus a one-page statement-flow diagram showing how net income, retained earnings, and cash movements connect across the income statement, balance sheet, and cash-flow statement
Financial Statement Analysis
Calculate horizontal (trend) and vertical (common-size) analysis on a two-year income statement and balance sheet
Compute gross margin, operating margin, net margin, return on assets, and return on equity, then rank which of the five best signals operating deterioration
Build a 12-ratio scorecard covering liquidity, leverage, coverage, activity, and profitability, with the formula and interpretation direction for each
Identify three red flags in a cash-flow statement (for example, rising net income with falling operating cash flow) and explain what each implies for repayment capacity
Your checkpoint
A completed ratio scorecard template with formulas, interpretation notes, and three worked red-flag examples
Financial Statement Analysis & Credit Policy, Investigation, and Risk Assessment
Detect earnings-management tactics such as channel stuffing, capitalization of routine costs, and reserve releases, and describe the ratio signal each one leaves
Analyze a small set of financials for a hypothetical trade creditor and write a three-paragraph credit memo summarizing repayment capacity
Draft a credit application checklist listing every document and data point needed before underwriting begins
Explain how industry and business risk interact with financial risk when setting an overall risk grade
Your checkpoint
A three-paragraph sample credit memo for a fictional company, with the ratio evidence cited for each conclusion
Credit Policy, Investigation, and Risk Assessment
Design a tiered credit policy: approval authority levels, credit limits, review frequency, and hold rules
Build a risk-rating scale of at least six grades with explicit criteria for moving up or down a grade
Outline a credit investigation sequence: trade references, bank references, public records, and credit bureau data, noting what each source can and cannot confirm
Score three fictional applicants against your risk-rating criteria and justify each grade in writing
Your checkpoint
A written credit policy document (approval tiers, risk grades, review cadence) plus a scored rating sheet for three fictional applicants
Credit Decisioning, Terms, and Collections
Compare net 30, 2/10 net 30, and cash-on-delivery terms by computing the annualized cost of forgone discount and the effect on the seller's cash conversion cycle
Set credit limits for three fictional buyers using a formula that blends net worth, payment history, and exposure tolerance
Draft a collections escalation ladder from reminder call to demand letter to agency placement, with a day-count trigger at each step
Write two collection call scripts, one for an early-stage reminder and one for a past-due account over 60 days, using questions that surface the real cause of nonpayment
Your checkpoint
A collections escalation matrix with day-count triggers, owner, and required documentation at each stage, plus the two call scripts
Credit Law, Security Instruments, and Professional Ethics
Distinguish secured from unsecured credit and list the perfection requirements for each common collateral type, including UCC Article 9 filings
Explain the priority rules among competing secured creditors and where a purchase-money security interest changes the outcome
Summarize the treatment of a bankrupt customer's claim, including the automatic stay and the preference period, in plain language
Identify the personal-guaranty elements that make a guaranty enforceable and the defenses a guarantor commonly raises
Your checkpoint
A one-page security-instrument comparison table covering collateral type, perfection method, priority position, and key risk for each
Credit Law, Security Instruments, and Professional Ethics & Credit Policy, Investigation, and Risk Assessment
Apply a professional code of conduct to four ethical dilemmas: pressure to extend credit to a related party, sharing a customer's financials, inflating a risk grade, and aggressive collection tactics
Explain fair lending and equal-treatment obligations as they apply to commercial credit decisions and documentation
Review your week 4 credit policy and add controls that address conflicts of interest, data confidentiality, and record retention
Write a short ethics decision checklist an analyst can use before approving an exception
Your checkpoint
An ethics decision checklist plus written responses to the four dilemmas, each citing the principle at stake and the compliant action
Business Credit and Financial Management Fundamentals & Credit Policy, Investigation, and Risk Assessment & Financial Statement Analysis & Credit Decisioning, Terms, and Collections & Credit Law, Security Instruments, and Professional Ethics
Take a timed 60-question mixed mock exam across all five domains and record your score by domain
Re-study your two weakest domains using your own glossary, scorecard, and policy documents
Rewrite any glossary entry or ratio formula you missed on the mock exam until you can state it from memory
Assemble a one-page exam-day reference sheet of formulas, day-count triggers, and legal tests you will review the morning of the exam
Your checkpoint
A scored mock exam with a per-domain breakdown and a one-page exam-day reference sheet of formulas and key tests
Milestones
Week 2: Can compute all 12 scorecard ratios from raw figures and state the direction that signals deterioration for each, without notes
Week 4: Can assign a defensible risk grade to a new applicant in under 20 minutes using your written criteria and cite the evidence for it
Week 6: Can explain perfection, priority, and guaranty enforceability for a given collateral scenario in a two-minute spoken answer
Week 8: Scores at least 75 percent on the timed mixed mock exam with no domain below 65 percent