This training impacts a comprehensive set of knowledge required for lending to the SME sector. It among others seeks to equip those involved in the lending process with the requisite tools and techniques needed to make informed decisions when granting and monitoring loans to SME clients. The course outline for the three days training will include:
- Loan Officers
- Customer Relationship Managers
- Credit Risk Analysts
- Credit Committee members
- Bank Branch Managers
- Recovery Officers
- Compliance & Operational Control officers
- Internal Auditors
- The Lending Process / Cycle;
- Loan Assessments and Analysis including using SWOT Analysis
- Cash Flow Analysis
- Financial Statement Analysis: Balance Sheet and Income Statement
- Collateral Valuation techniques
- Credit Risk Analysis
- Loan Approval and Documentation Process
- Collection and Monitoring
- Loan Restructuring
- Session 1: Overview of lending to SMEs:
This session will take a critical look at lending to SME with it unique features, challenges and benefits to banks and other financial institutions.
- Session 2: Step-by-Step: the loan process:
This session goes through the detailed steps the Credit staff must perform to complete the loan analysis, get the loan approved and collect and monitor the loan.
- Session 3: Credit Analysis:
Explain the process whereby the MFI evaluates the client using the screening, application and loan appraisal tools.
- Session 4: Cash flow Analysis:
This session teaches the how to use the cash flow tool to determine the client’s repayment capacity.
- Session 5: Financial Statement:
This session briefly reviews the income statement and the balance sheet and how to effectively use it analyze a client’s present asset, liability and equity situation.
This session reviews the security requirement for the individual loan and the detailed examples of various types of collaterals combination and specific real examples.
Session 7: Loan Structuring:
This session instructs the participants, after evaluating the repayment capacity, on how to properly evaluate the project needs and formulate proper loan amount, repayment format and disbursement conditions.
Session 8: Loan Approval:
This session deals with a series of practical steps test, which will be necessary for obtaining approval of the loan and disbursing the loan.