Time We Discuss: A Career in Corporate Finance
Watch/Listen to this Episode A Career in Corporate Finance
This episode of Time We Discuss features Jan Allen Ackley, a corporate finance expert with over 35 years of experience. He discusses his career journey, daily responsibilities, and insights into corporate finance.
Career Background and Role
Jan Allen Ackley started his career in finance without extensive math knowledge in high school. Over time, he developed expertise in financial analysis and corporate lending. Currently, he serves as the Chief Credit Officer at a bank in Salt Lake City, Utah, where he manages financing for businesses of various sizes.
His daily responsibilities include reviewing financial statements, analyzing balance sheets, and assessing companies’ creditworthiness. He primarily works with businesses seeking loans or financing, typically in the range of a few million dollars. His job involves frequent meetings with company representatives, including owners, CFOs, and board members, to understand their financial needs and business objectives.
Corporate Finance vs. Personal Finance
Ackley explains the key differences between corporate and personal finance. While individuals rely on credit scores for loans, businesses undergo a more complex evaluation process. Companies must provide financial statements prepared by Certified Public Accountants (CPAs), interim financial reports, and details about their industry, competitors, and market position. He and his team analyze these documents to determine financial stability and loan feasibility.
Loan Process and Timeline
The time required to approve financing depends on the type of loan. For example, loans for purchasing specific equipment may take just a few days, while revolving lines of credit—where accounts receivable and inventory serve as collateral—may take up to a month due to additional audits and risk assessments.
Career Path and Education
Ackley discusses the educational paths available for those interested in corporate finance. A bachelor’s degree in business administration with a focus on finance, accounting, or economics is beneficial. However, he notes that an MBA can also help individuals transition into the field, even if their undergraduate degree is unrelated.
It is possible to enter corporate finance without a formal degree, but it requires starting at an entry-level position, such as a bank teller, and gradually gaining experience. He shares an example of an employee who advanced without a college degree but spent years working in the industry to develop expertise.
Necessary Skills and Job Characteristics
Corporate finance professionals must be comfortable working in an office environment and engaging in frequent communication. The job requires strong interpersonal skills, as building relationships with clients is crucial. Professionals also need analytical abilities to evaluate financial statements and assess business risks.
The role involves some travel, particularly for senior professionals who conduct site visits to assess borrowers’ operations and maintain relationships. Visiting companies in person helps validate financial statements and provides insights that numbers alone cannot convey.
Work Schedule and Remote Opportunities
Corporate finance typically follows an 8-to-5 work schedule, though workloads can fluctuate. Many professionals work in banks, and some banks offer remote or hybrid work arrangements. Ackley himself follows a hybrid schedule, working remotely on Mondays and Fridays while being in the office on other days.
Entrepreneurial Opportunities
Experienced professionals can work independently, acting as intermediaries between businesses and banks. Ackley mentions that his years of experience allow him to structure complex financing solutions for businesses and connect them with banks that suit their needs.
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