MSME Finance and Risk Management Training Course

Participants can select and structure financing products that match borrower cash-generation patterns.

• Term loans structured against asset life, cash generation and amortisation capacity
• Revolving credit facilities sized from peak working-capital requirements
• Overdrafts, invoice finance and purchase-order finance matched to trading cycles
• Asset-based lending assessed through collateral eligibility, advance rates and controls
• Guarantee schemes evaluated for coverage, claim conditions and residual bank risk
• Islamic finance structures compared: murabaha, ijara and diminishing musharakah

Participants can analyse MSME financial performance and identify credit-relevant weaknesses in reported results.

• Three-year financial statements recast into analytical income, balance-sheet and cash-flow formats
• Common-size analysis isolates margin shifts, working-capital pressure and capital structure
• Ratio analysis calculates liquidity, profitability, gearing, turnover and debt-service capacity
• Debt-service coverage ratio tested against proposed repayment schedules
• Cash conversion cycle reconciled to sales growth and supplier terms
• Quality of earnings assessed through related-party transactions and nonrecurring income

Participants can forecast short-term liquidity and test whether borrowers can withstand adverse conditions.

• Direct cash-flow forecasts built from invoices, collections, payroll and supplier commitments
• Thirteen-week rolling forecasts updated with actual receipts and disbursements
• Base, downside and severe scenarios quantify repayment resilience
• Sensitivity analysis tests price, volume, foreign-exchange and interest-rate shocks
• Break-even analysis identifies minimum sales needed to cover fixed costs
• Repayment capacity determined from free cash flow after owner drawings

Participants can prepare a structured credit assessment with clear risk rationale and approval conditions.

• Five Cs of Credit applied to MSME borrower assessment
• Credit memoranda document purpose, repayment source, covenants and mitigants
• Character evidence evaluated through conduct, references, ownership and governance
• Capacity assessment links projected cash flow to debt-service obligations
• Collateral valuation distinguishes market value, forced-sale value and haircuts
• Conditions precedent specify documentation, insurance, registrations and approvals
• Delegated authority matrices separate origination, approval and exception decisions

Participants can use credit-scoring and expected-loss concepts to support consistent lending decisions and pricing.

• Application scorecards combine financial ratios, behavioural data and qualitative factors
• Logistic regression outputs interpreted using probability of default and cut-offs
• Judgmental overrides governed by reason codes, limits and second-line review
• Risk-based pricing combines funding cost, expected loss, capital and operating expense
• Expected loss calculated from probability of default, loss given default, exposure at default
• IFRS 9 staging distinguishes performing, underperforming and credit-impaired exposures
• Approval turnaround tracked through funnel conversion and exception rates

Participants can monitor MSME portfolios systematically and intervene before delinquency becomes entrenched.

• Early-warning indicators flag missed payments, covenant breaches and declining turnover
• Account monitoring plans set visit frequency, financial reporting and trigger thresholds
• Portfolio vintage analysis separates origination quality from macroeconomic deterioration
• Concentration limits monitor sector, geography, product, borrower and collateral exposures
• Watchlist procedures assign actions, owners, deadlines and escalation routes
• Collections segmentation prioritises reminders, restructuring, recovery and legal action

Participants can assess security arrangements and apply controls against legal, fraud and operational risks.

• Security packages combine guarantees, charges, pledges, assignments and insurance
• Perfection requirements checked through registries, notices, consents and priority searches
• Loan covenants designed around reporting, liquidity, borrowing and asset disposals
• Fraud red flags identify document manipulation, circular trading and identity misuse
• Know Your Customer reviews verify ownership, source of funds and sanctions
• Operational risk controls segregate duties, approvals, disbursements and account changes

Participants can assess distress, select restructuring options and plan proportionate recovery actions.

• Borrower distress diagnosed using cash shortfalls, arrears ageing and covenant failures
• Forbearance options assessed: rescheduling, grace periods, extensions and refinancing
• Restructuring plans test revised cash flows, sponsor support and security
• Non-performing exposure classifications aligned with arrears, impairment and recovery evidence
• Workout strategies compare consensual recovery, collateral enforcement and insolvency routes
• Provisioning estimates reflect expected recoveries, timing and recovery costs

Participants can incorporate insurance protection and defined risk actions into MSME portfolio management.

• Credit insurance assessed for buyer default cover, exclusions and claims procedures
• Key-person, property and business-interruption insurance linked to repayment risk
• Parametric and agricultural insurance considered for climate-sensitive MSME portfolios
• COSO ERM risk registers connect events, controls, indicators, owners and actions
• Portfolio action plans prioritise product changes, monitoring improvements and training
• Individual application plans specify first 90-day underwriting and portfolio actions