Credit and Financial Analysis for SMEs

3 Day Workshop
(Workshop is not being offered at this time)

Introduction

The SME business sector is a global market segment distinguished by a unique set of credit analysis characteristics: lack of a universal definition of size (each country has its own definition), poor quality financial information, etc.  These characteristics make analysis and ultimate funding decisions, difficult.

This programme is designed to provide the participant with insight into this market segment.  It provides an explanation of the market, and charts an appropriate set of analysis tools to analyse it. The course is interactive in scope and includes practical and theoretical instruction in credit risk analysis, accompanied by the use of group exercises and case studies (it identifies the key information requirements and global best practices, and offers direction on how to assess that information – to ensure a sound credit decision).

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Objectives

• Understand the SME market and its set of credit analysis challenges
• Discuss the impact of the growth of the SME market
• Assess a company’s management
• Review key financial ratios, cash flows and financial trends
• Evaluate and forecast financial and credit performance and repayment
• Structure a sensible credit package, including the evaluation of appropriate assets as security for the credit

Who should attend this seminar?

This course is designed for individuals who would like to acquire a solid foundation for understanding and analysing the creditworthiness of small and medium sized corporate clients. The course does not require any previous knowledge of financial statements or credit analysis skills; it is primarily tailored for Relationship Managers and Junior Credit Analysts.  

GARP trainers use modern learning techniques (a blend of presentational methods and credit diagnostic software) used by many banks around the world – in order to assist with the risk analytical process

Content

Day One: 

• Identifying the SME market
• Qualitative assessment – the business
• Qualitative assessment – the corporation
• Qualitative assessment – management

Group Exercises 

Day Two

• Quantitative assessment – financial performance
• Financial and Cash Flow analysis
• Trend analysis and financial projections

Group Exercises

Day Three 

• SME credit risk and regulatory issues
• Interpretation and application of results
• Capstone assessment and case study
• Summary and closing

Please note that the sequence and/or exact subject matter of the programme may differ from what is presented here since the programme is constantly being updated to embrace new ideas and developments as they evolve.