2 Days Workshop
Introduction
The primary goal of this workshop is to help professionals who have some knowledge in Credit & finance in developing sound financial knowledge to read and understand financial reports & granting credit facility. Real-current problematic finance & credit business cases will be analyzed and scenario solutions will be discussed in the workshop.
Course Objectives
By the end of this course you will be able to:
Use Cash Flow statement to evaluate financial performance
Understand the relationship between cash flow statement and balance sheet
How to look for information efficiently in the annual report
Applying Altman Z score- output of a credit-strength test that gauges & predictable of company’s failure
Learn how to size up a company quickly by reading their financial ratios
Assess Credit analysis & profiling customers
Understand Credit Assessment & Collection Case Studies
Understand Financial Analysis Strategies for Business Turnaround
Methodology
Case Study & Group Discussion.
Who Should Attend
Entrepreneurs, Bankers, Credit Managers & Credit Officers, Accountants, Finance managers, CFO, Business Managers, Marketing Managers & Accounting Supervisors
Special Feature: NOTE: Please bring laptop along
Programmed Outline
Day 1
Module 1: Credit Analysis
Customer Risk Profile
Assessing Your Risk Factors
What Are the Strategies to Negotiate Debt?
Why Borrowers Are Not Paying You
Credit Rating Agencies & Credit Insurance
Module 2: Credit Collection Negotiation Tactics
The building block technique
Silence
Repeat, repeat…
Recess
Divide & rule
Empathy
Re-escalation of demand
“One more thing”
Deadlines
Slicing
Module 3: Credit Evaluation & Monitoring
Importance of Credit Evaluation & Monitoring
Criteria For Approval Or Rejection
Setting the Credit Limit
Monitoring Customer Account
Group exercises
Module 4: Credit Assessment & Collection Case Studies
Case Study 1 (Negotiation Skill)
Case Study 2 (Credit Evaluation)
Case Study 3 (Handling Difficulty Debtor)
Case Study 4 (Bank Branch Manager Task)
Case Study 5 (Head of Credit Controller Task)
Case Study 6 (Dealing with NPL borrowers)
Case Study 7 (Detecting early warning sign)
Case Study 8 (Government Accounts)
Day 2
Module 5: Credit Rating Altman Z’ Score-Insolvency Predictor (case study)
Earnings Before Interest & Taxes
Total Assets
Net Sales
Market Value of Equity
Total Liabilities
Current Assets
Current Liabilities
Retained Earnings
Module 6: Financial Ratios Analysis (Case Study)
Learn how to size up a company quickly by reading their financial ratios
Liquidity
Solvency
Efficiency
Profitability
Asset Management
Assessing drivers of company profitability and growth: -
Operations and investment strategies: operating and investment management
Altman Z score- output of a credit-strength test that gauges & predictable of company’s failure
Module 7: Financial Analysis Strategies for Business Turnaround (Case Study)
Objectives
Asset conversion
Fees & Collection
Spreading costs
Manpower review
Stock management
Product market study
Sales
Module 8: Cash Flow Statement
Lifeblood of business – Cash Flow Statement
Relationship between cash flow statement and balance sheet
3 streams of cash flow, Operating, Investing &Financing
How to determine financial health from cash flow pattern
Determining if the company is using internal cash flow to finance growth or relying on external financing