Fundamentals of Credit and Financial Management Course

Fundamentals of Credit and Financial Management course aims to equip delegates with the knowledge and skills to understand and manage credit and financial risks, encompassing lending principles, financial statement analysis, and credit decision-making. 

Overview

Credit plays an important role in the lives of many individuals and Organization; it’s also a key source of funding for businesses making capital expenditures (CAPEX). In this course, we discuss important lending topics like the difference between traditional loans and trade credit, different types of interest, different types of loans, where collateral security fits in, and how to build an amortization schedule for reducing term debt. We cover an overview of the 5 Cs of Credit framework and how it may influence different loan characteristics before diving into some qualitative assessment tools and a list of the key financial ratios that an analyst would look at when evaluating a company’s creditworthiness.

Financial Management focuses on the foundations of finance concepts required to be capable of managing day to day financial operations and to solve complex financial matters. You’ll examine the elements of financial statements of an entity and impact of changes in one element on the other. Additionally, you’ll learn to plan and control cash flows and make decisions in the microeconomic and macroeconomic environment.

Who should take this course?

This Fundamentals of Credit course is perfect for any aspiring or early-stage credit professionals, including business and commercial bankers, credit analysts, real estate lenders, equipment finance, loan & mortgage brokers, and other private (non-bank) lenders.

Course Contents:

• Lending Principles & Credit Risk:
  • Understanding different types of loans (traditional, trade credit, etc.). 
  • Analyzing the 5 Cs of Credit (Character, Capacity, Capital, Collateral, Conditions). 
  • Importance of credit risk and its management. 
  • Understanding due diligence in credit. 
  • Feasibility and viability studies. 
  • Legal aspects of different business structures (sole proprietorship, partnership, company). 
  • Borrowing powers of a company. 

Financial Statement Analysis:

• Understanding financial statements (balance sheet, income statement). 
• Learning how to analyze income statements and balance sheets. 
• Ratio analysis and its application in credit decision-making. 
• Understanding key financial ratios (liquidity, solvency, profitability). 
• Vertical and horizontal analysis of financial statements. 

Credit Decision-Making:

• Understanding working capital loan computation. 
• Term loan characteristics and repayment schedules. 
• Debt Service Coverage Ratio (DSCR) and its role in credit decisions. 
• Break-even analysis. 
• Depreciation schedule preparation. 
• Insurance premium calculation. 
• Case studies on term loan processing. 

Other Relevant Areas:

• Understanding banking risks and lending principles. 
• Importance of effective lending practice and ethical considerations. 
• Understanding the role of banks and financial institutions in the economy. 
• Understanding the credit landscape and career opportunities in credit management. 

Proper use of surplus and financial management

Course Booking

Please use the “book now” or “inquire” buttons on this page to either book your space or make further enquiries.