Workshop Coverage:

Credit Management

• Overall Perspectives of Credit Management
• Standard Principles of Credit
• Need for Departing from Collateral & Name Lending Scenario

Introduction to Accrual Accounting

• Introduction
• Primary Financial Statements
• Accrual Accounting
• Cash Tracing Techniques
• Connecting the Statements
• The Accounting Process
• Journal Entries

The Asset Conversion Cycle

• Components of the Assets Conversion Cycle
• Timing Differences and Financing Needs
• Estimating Operating Cycle Financing Needs

Accounting for the Operating Cycle 

• Accrual Accounting and Cash Flow
• Revenue, Expenses, and Debtors
• Stock and Cost of Goods Sold
• Job Aids
• Expense Recognition

​​​​​​​Accounting for the Investment Cycle 

• Introduction
• Fixed Assets and Depreciation
• Investments and Intangible Assets

​​​​​​​Accounting for Liabilities and Equities

• Introduction
• Current and Long-Term Liabilities
• Owner’s Equity
• Working Capital
• Tax

​​​​​​​Financial Reporting and Full Disclosure

• Introduction
• The Financial Reporting Environment
• Financial Statements and Notes to the Accounts

​​​​​​​Identifying Borrowing Causes

• Borrowing Caused by Sales Growth
• Borrowing Caused by the slowdown in the Operating Cycle
• Borrowing Caused by purchases of Fixed Assets
• Borrowing Caused by other factors

​​​​​​​Industry Risk Analysis

• Introduction
• Industry Risk Characteristics
• Case Studies

​​​​​​​Business Risk Analysis

• Introduction
• Business Analysis Perspective
• General Characteristics and Goals
• Product-Market Match
• Supply and Production Analysis
• Distribution and Sales
• Management Analysis
• Drawing Conclusion
• Case Study

Financial Statement Analysis

• Introduction
• Financial Ratio Categories
• Developing Financial Statement Expectations
• Assessing Operations Management
• Key Financial Ratios
• Examining the Balance Sheet for Accounting Risk
• Case Study

​​​​​​​Cash Flow Analysis

• Introduction
• The Cash Flow Summary
• More Cash Flow
• Case Study

Projections

• Introduction
• The logic and Purpose of Projections
• Sensitivity Analysis
• Projecting the Cash Flow Summary
• Projecting the Balance Sheet
• Case Study

​​​​​​​Loan Structure and Documentation

• Introduction
• The Decision
• Loan Structure: Choosing the Right Facility
• Disbursement, Term, Repayment Schedule and Support
• Loan Agreements and Covenants
• Case Study

​​​​​​​Loan Management

• Introduction and Overview
• Credit Checks
• Monitoring Customer Performance
• Identifying Trouble Signs
• A Strategy for Problem Loans
• Practice Exercise

​​​​​​​Credit Risks Associated with Non-Funded Business LCs

• Guarantees
• Case Studies

​​​​​​​Security Management

• Types of security and nature of charges
• Valuation and margins
• Assessment of quality and salability

​​​​​​​Relationship Management

• Relationship Management from Marketing Perspectives
• Differentiation between Customer and Consumer Concept
• Client Relationship Management

​​​​​​​Credit Recovery

• Purpose of Collection Unit, Effective Collection, Delinquent Buckets
• Management Tools
• Collection Tools, Understanding delinquency buckets
• Financial impact, provision and write off
• Demand Letters, foreclosure, repossession, and auction
• Debt Recovery Tribunal
• Collection Strategy
• Recovery and NPA Management
• NRB Circulars

​​​​​​​Selling Credit from Branches

• Identifying Target market
• Qualifying the Suspects
• Understanding the science of selling credit
• Understanding the art of selling credit
• Handling objection.
• Interest Rate Negotiations​​​​​​​