Review of types of risks in lending to SMEs – for working capital and investment purposes. This module gave greater detail of risks faced in the SME sector and how they can be mitigated. The purpose was to increase the Non Financial assessment skills of the participants.
Estimating working capital requirements – it was clear that only a small number of participants had practiced this skill since the last course. It is fundamental to investment projects that they will also involve a change in working capital requirements. This module focused on improving participants’ understanding of the nature of working capital, and how working capital requirements depend on the terms of sales and purchases, management effectiveness, and the level of sales or activity of an SME. Participants were reminded how to use working capital turnover ratios (in days) to estimate the amount of working capital needed by an SME. Several exercises or case studies challenged participants to estimate changes in financing needs of growing SMEs
Demonstrate comparative analysis of P&L, balance sheet, cash flows, break-even. This module gave an opportunity to develop skills acquired in the previous course. Participants were shown how an understanding of the past is an important foundation of understanding and forecasting potential future performance for SMEs.
Preparing and evaluating balance sheet, profit, and cash flow projections for investment and expansion projects – this module included how to choose assumptions, how to prove that assumptions were realistic using available evidence and how to make sensible sensitivity analysis. These skills were demonstrated using cases studies and excel spread sheets.
Identifying risks in investment and expansion projects – this module focussed in the additional risks faced in long term and project lending. Project assessment skills were taught and practiced including Payback, NPV, and IRR. Participants were able to practice these new skills in two separate multi faceted case studies.
Assessing debt service capacity and structuring term loans – This module focussed on identifying the reliability of cash flows that are available to make repayment. Participants were able to practice these new skills in two separate multi faceted case studies.
Who is this course for?