Module 1: Macro context of SME Lending

Session One: Key functions of a modern banking system.

This session covers how to understand Modern Banking, an understanding of money and what constitutes the Money Supply – the money available in the economy, is needed through explaining the following areas:

• Modern banking system.
• Money Definition and Function
• Money Supply
• Exercise
• Assignment

Session Two: Functions of Banks.

This session covers banks undertake a wide variety of functions and services. They are financial intermediaries, an institution that facilitates the channeling of funds between lenders and borrowers indirectly through explaining the following areas:

• Role and Function of Commercial Banks
• Main features of the banking system in Egypt.
• Exercise
• Assignment

Session Three: Definition of SMEs.

This session covers why SME definitions are necessary to help with the segmentation of the sector through explaining the following areas:

• Definition of SMEs.
• Exercise
• Assignment

Session Four: SMEs as Customers of Financial Institutions.

This session covers Small and medium enterprises (SMEs) are the backbone of a strong economy. They create millions of jobs, this makes them a vital building block for economic growth and prosperity through explaining the following areas:

• The importance of SMEs for the economy
• Challenges Egypt’s SMEs are facing
• Exercise
• Assignment

Session Five: SMEs Life Cycle.

 This session covers SMEs and other businesses have different life stages and each stage usually needs a different level of funding.

• SME Life Cycle
• Exercise
• Assignment

Module Two: Responding to SME Customer Needs

Session One: Types of products for SME clients.

This session covers the range that SMEs need and why financial institutions may decide to fulfil these needs for creditworthy customers. through explaining the following areas:

• Products and Services to SMEs
• Relationship banking
• SME Customers
• Exercise
• Assignment

Session Two: Lending Rationales (part 1).

This session covers required finance from financial institutions for both short-term and longer-term needs.

• Structure of Facilities
• Eighteen Credit Principles.
• Exercise
• Assignment

Session Three: Lending Rationales (part 2).

This session covers required finance from financial institutions for both short-term and longer-term needs.

• Eighteen Credit Principles.
• Exercise
• Assignment

Session Four: Types of Finance.
This session covers the products that match SME clients, and how to finance supply chain cycle. through explaining the following areas:

• Matching products to the client’s needs.
• Supply Chain Finance
• Types of products for SME clients
• Exercise
• Assignment

Session Five: Matching Products to the Client’s Needs.

This session covers the relationship skills for SME staff with a focus on sales cycle and listing skills. through explaining the following areas:

• Relationship Skills
• Sales Cycle
• Listening Skills
• Exercise
• Assignment

Session Six: Matching Products to the Client’s Needs.

This session covers cross sales techniques for SME staff. through explaining the following areas.

• Cross sales techniques
• Exercise
• Assignment

 

Module Three : SME Client Assessment

Session One: Specifics of SMEs.

This session covers how can analyst help manage and reduce credit risk by ensuring that all business risks are identified and by confirming that all risks can be managed through explaining the following areas.

• Exercise
• Understanding to Client Needs
• Understanding the business cycle
• Understanding sector or product lifecycle
• Assignment   

Session Two: Understanding SME Business Risks (part 1).

This session covers that financial Institution faces several risks when dealing with SMEs. These can affect or undermine the ability of the SME to make repayments. through explaining the following areas.

• SME Business Risks
• Exercise
• The Main SME Risks
• Assignment

Session Three: Understanding SME Business Risks (part 2).

This session covers that SMEs are highly vulnerable inherent in their very nature, the most effective way to understand SMEs and their financials is to build a close relationship with the clients.

• Exercise
• Useful Lending Acronyms
• Non-Financial Analysis
• Assignment

Session Four: Understanding SME Business Risks (part 3).

This session covers key factors in the success of any business is the level of skills and knowledge possessed by the SME’s management/owners and the ability of new competitors to enter the market can pose a threat to existing SMEs. through explaining the following areas:

• Non-Financial Analysis
• Management skills – SME businesses
• Business Sector Risks
• Products and Markets Strategies
• Exercise
• Assignment

Session Five: KYC & Verification of Clients’ Information.

This session covers Knowing your customer (KYC) is the process of confirming the identity of clients and assessing potential risks for the business relationship.

• Know your customer (KYC)
• Verification of clients’ information
• Exercise
• Assignment

 

Module Four : SME Credit Analysis – Understanding Financial Statements

Session One: Income Statement Analysis.

This session covers the Main definitions and principles of accounting and the income statement main components through explaining the following areas:

• Main definitions and principles of accounting
• The income statement main components
• Exercise
• Assignment

Session Two: Balance Sheet Statement Analysis.

This session covers the structure of the balance sheet and main facts about it with focus on some accounting terms. through explaining the following areas:

• Information on the Balance Sheet
• Balance Sheet Structure
• Exercise
• Accounting Terms
• Assignment

Session Three: Depreciation.

This session covers two Methods of Depreciation, with focusing on the Difference Straight-line & Reducing balance, through explaining the following areas:

• Methods of Depreciation
• Exercise
• Difference Straight-line & Reducing balance
• Assignment

Session Four: Working Capital.

This session covers the meaning of liquidity and how the working capital cycle and cash conversion cycle work and link it with the balance sheet. through explaining the following areas:

• Liquidity Defined
• Exercise
• Understanding Balance Sheets
• The Working Capital Cycles
• Cash Conversion Cycle (CCC)
• Assignment

Session Five: Financial Ratios (part 1).

This session covers some financial ratios which relate to Business Cycle, Liquidity, and Working Capital. through explaining the following areas.

• Financial Ratios Categories
• The Business Cycle
• Liquidity and Working Capital
• Exercise
• Assignment

Session Six: Financial Ratios (part 2).

This session covers how to manage Working Capital and focus on some financial ratios which’s relate to (return, gearing, and solvency) ratios and clarify the Timing & Conditions for Revenue Recognition, through explaining the following areas:

• Management of Working Capital
• Earnings Ratios
• Return Ratios
• Gearing and Solvency Ratios
• Exercise
• Timing & Conditions for Revenue Recognition
• Assignment

Session Seven: Net Working Asset.

This session covers the Importance of working capital, Working Capital Cycle, and Working capital requirement. Through explaining the following areas:

• Importance of working capital
• Working Capital Cycle
• Exercise
• Working capital requirement
• Assignment

Session Eight: Break-Even Analysis.

This session covers the Using Break-Even Analysis and Margins of Safety. through explaining the following areas.

• Using break-Even Analysis
• Exercise
• Margins of Safety
• Assignment

Session Nine: Verifying Financial Information (part 1).

This session covers Reliability of financial Statements and Cross-checking model. through explaining the following areas:

• Reliability of financial Statements
• Exercise
• Cross checking
• Assignment

Session Ten: Verifying Financial Information (part 2).

This session continue covers the Cross checking, and Sales and Accounts receivable, and Equity Cross Check. through explaining the following areas:

• Cross checking
• Sales and Accounts receivable
• Exercise
• Equity Cross Check
• Assignment

Module Five : SME Credit Analysis: Cash-flow Analysis

Session One: Income Statement Analysis.

This session covers Management of cash and Preparing and analyzing cash-flow statements. through explaining the following areas:

• Management of cash
• Preparing and analyzing cash-flow statements
• Exercise
• Assignment

Session Two: Preparing Financial Forecasts (Budgets)

This session covers Define Forecasts and Example Preparing financial forecasts. through explaining the following areas.

• Define Forecasts
• Example Preparing financial forecasts
• Exercise
• Assignment

Session Three: Preparing Financial Forecasts (Application)

This session covers the main structure of cash flow statement. through explaining the following areas.

• Cash Flow statements
• Exercise
• Assignment

Session Four: Preparing and analyzing cash-flow statements (intro.)

This session covers the effect of change in cash and cash movements and how it affects the cash flow statements activities. through explaining the following areas.

• Changes in cash
• Cash Movements
• Cash Flow Activities
• Exercise
• Assignment

Session Five: Preparing and analyzing cash-flow statements (Measures of Cash Flow)

This session covers the cash flow statements activities and focuses on cash equivalents. through explaining the following areas.

• Cash Flow Activities
• Cash equivalents
• Exercise
• Assignment

Session Six: Assessing Financial Forecasts (Testing assumptions)

This session covers Cash Flow Forecasts and its Assumptions. through explaining the following areas.

• Cash Flow Forecasts
• Testing Forecasts (Assumptions)
• Exercise
• Assignment

Session Seven: Assessing Financial Forecasts (Budget Deviation Analysis (BDA)

This session covers Scenario testing topic, through explaining the following areas.

• Scenario testing
• Exercise
• Assignment

Session Eight: Assessing Financial Forecasts (Application)

This session covers how to evaluate long-term finance (projects) with a focus on Risk Classification. through explaining the following areas.

• Project Evaluation
• Risk Classification
• Exercise
• Assignment

Session Nine: Investment Projects (Project Evaluation)

This session covers Operation Risk and Causes of Project Failure and meaning of project finance and Financial Appraisal methods. through explaining the following areas.

• Operation Risk
• Causes of Project Failure
• Project finance
• Financial Appraisal methods
• Exercise
• Assignment

Session Ten: Investment Projects (Payback Period)

This session covers Net Present Value (NPV). through explaining the following areas.

• Net Present Value (NPV)
• Exercise
• Assignment

Module 6: Post disbursement of loans

Session One: Loan Portfolio Management and Monitoring.

This session covers Monitoring and Portfolio Management, Credit Risk Management Cycle, Problem Loan Cycle, and Reporting and MIS. through explaining the following areas.

• Monitoring and Portfolio Management
• Credit Risk Management Cycle
• Problem Loan Cycle
• Reporting and MIS
• Exercise
• Assignment

Session Two: Warning Signs.

This session covers Reasons for Business Failure and Warning Signs using Cash Flow. through explaining the following areas.

• Reasons for Business Failure
• Warning Signs using Cash Flow
• Exercise
• Assignment

Session Three: Non-Performing Loans

This session covers Turnaround Situation, profit & cash flow levers, Problem Loan Process Map, and Stages of Insolvency. through explaining the following areas.

• Turnaround Situation
• Profit Levers
• Cash Flow Levers
• Problem Loan Process Map
• Stages of Insolvency
• Exercise
• Assignment

Session Four: Insolvency and Bankruptcy Proceedings

This session covers Types of Liquidation, Insolvency Stages, Bankruptcy Proceedings, and Credit Portfolio. through explaining the following areas.

• Types of Liquidation
• Insolvency Stages
• Bankruptcy Proceedings
• Credit Portfolio
• Exercise
• Assignment

Session Five: Loan Portfolio Management

This session covers. Sources of Portfolio Risk Factors, Risk Impact Analysis Matrix, Rating Systems, Portfolio Management, and Problem Loan Process Map. through explaining the following areas.

• Sources of Portfolio Risk Factors
• Risk Impact Analysis Matrix
• Rating Systems
• Portfolio Management
• Problem Loan Process Map
• Exercise
• Assignment

Module Seven : Credit Report

Session One: The Principles of Clear Writing

This session covers the main principles of effective report writing, and introduction to credit report components. through explaining the following areas.

• the main principles of effective report writing.
• the Credit Report Components

Session Two: Credit Report Template (part 1)

This session covers the non-financial topics of credit reports. through explaining the following areas.

• Credit Reports (1)
• Introduction – company details.
• Management Structure Analysis.
• Futures Plans
• Economic Situation Analysis.
• Industry Analysis.
• Risk Analysis.

Session Three: Credit Report Template (part 2)

This session covers the financial topics of credit reports. through explaining the following areas.

• Credit Reports (2)
• Financial Statements Analysis.
• Cash Flow Analysis
• Projection

Module Eight : Trade Finance

Session One: Shipping Documents

Shipping documents are the most important requirements of the commercial transactions it play the biggest role in securing the commercial transaction parties. We will go through it by explaining the following areas.

• Exercise
• Commercial Invoice.
• Packing/Weight list.
• Transport Document.
• Insurance Document.
• Certificate of Origin.
• Inspection Certificates.
• Health Certificates.
• Other Documents.
• Bill of Exchange
• Assignment

Session Two: Documentary collections and Documentary Credits.

This session covers Documentary collections and Documentary Credits. through explaining the following areas.

• International Payment Tools
• Documentary Credits
• Documentary Credit Life Cycle
• Exercise
• Assignment

Module Nine : Legal

Session One: Legal aspects of credit, financing, and credit facilities

This session covers Legal aspects of credit, financing, and credit facilities. through explaining the following areas.

• Legal Aspects of Credit.
• Legal Definition of Credit
• Properties of Credit Decision
• Assignment

Session Two: Guarantees and Types of Companies

This session covers Guarantees and Types of Companies through explaining the following areas.

• Regulations of granting credit facilities and loans
• credit policy
• Bank guarantees
• Exercise
• Types of companies
• Assignment