3 Topics
5 Days
17 Sessions
Programme Overview
Training Description
- Credit risk professionals
- Guarantee fund and credit guarantee professionals
- Microfinance professionals
- Development finance professionals
- Investment and lending professionals
- Risk and compliance officers
- Portfolio managers
- Financial-sector regulators and policymakers
- Professionals involved in SME financing and financial inclusion
Session Objectives
- Apply a structured approach to assess the creditworthiness of a small or medium sized company
- Assess the performance of a SME company based on qualitative and quantitative frameworks and tools
- Use a cash flow approach to ascertain a company’s ability to service/refinance its debt as it comes due
- Understand the key funding sources available to SMEs
About the Course
SMEs Guarantee and Credit Analysis is a practical training course designed to equip banking, financial-services, credit, and guarantee professionals with the skills required to assess SME borrowers, evaluate creditworthiness, structure appropriate financing, and manage guarantee-backed lending effectively.The course examines the unique characteristics and risks of SME financing, including financial statement analysis, cash-flow assessment, credit scoring, collateral and guarantees, borrower assessment, risk grading, facility structuring, monitoring, and recovery. Participants will learn how to make sound, evidence-based credit decisions while balancing portfolio growth, financial inclusion, and credit risk management.
Curriculum & Topics
3 Topics | 17 Sessions
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Workshop 1.1:
• The role and strategy of the management team as well as the influence and control of shareholders are assessed.
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Workshop 1.2:
• Different types of SME ownership; owners’ and stakeholders’ support and influence
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Workshop 1.3:
• Owner competence and integrity; potential effect on the company’s creditworthiness
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Workshop 1.4:
• Management’s business and financial strategy and performance goals
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Workshop 1.5:
• Quality of financial reporting and management information
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Workshop 1.6:
• Application: Illustration case study provided as pre-course material
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Workshop 2.1:
• Understanding a company’s business strategy in the context of sector, country of operation and shareholder requirements.
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Workshop 2.2:
• Diversity of services/products, geographical markets, customer and suppliers.
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Workshop 2.3:
• Competitive position: ‘Unique selling points’ and a company’s relative market position. Comparative size and possible operating efficiencies.
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Workshop 2.4:
• Sector-specific success factors that need addressing.
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Workshop 2.5:
• Application: Illustration case study provided as pre-course material.
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Workshop 3.1:
• Overview of main elements of debt structures used in SME financing.
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Workshop 3.2:
• Exposure profile: The appropriateness of the structure in terms of amount, currency, maturity and type of financial instrument (or commercial exposure)
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Workshop 3.3:
• Ranking vs. other obligors: Legal, structural and constructive subordination
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Workshop 3.4:
• Collateral and personal guarantees used to achieve seniority
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Workshop 3.5:
• Impact of shareholder loans on lenders – the use of subordination/inter-creditor agreements
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Workshop 3.6:
• Safeguards: The use of documentation and covenants to mitigate risk
