CREDIT TO SME's

Small and medium enterprises comprise much of the local economy in developing and developed countries alike. Moreover, SMEs represent a vast and largely untapped market for financial institutions in many countries. Although plagued by weak financial reporting and inadequate resources for expansion that cause leading local banks to perceive them as high-risk, many commercial banks around the world have managed to overcome these obstacles with proven models of profitable and effective small business lending.

Objectives:

1. To evaluate risks associated with the financial situation of SMEs through an analysis of qualitative and quantitative information, with or without reliable company accounts;

2. To target SME clients with appropriate marketing strategies;

3. To identify business financing needs;

4. To understand and apply the key concepts of financial analysis to SME risk, particularly through cash flow and budget analysis;

5. To identify viable projects and appraise SME credit requests; and

6. To identify early warning signs of company distress and adopt appropriate conduct vis-à-vis SMEs in distress.


Content’s highlights:

This training aims at serving bankers’ needs of better targeting the SME segment.

The emphasis will be put on improving the capacity of local banks to appraise SME credit requests and manage an SME loan portfolio. The programme will enable participants to understand and build on:

 - Best practices in the principles of risk management, in general, and credit risk

management, in particular

 -  Loan portfolio analysis using state-of-the-art credit tools designed to risk rate and price loans

 -  Credit analysis of micro entrepreneurs and SME’s

 -  Problem loan analysis and early warnings signs detection

 -  Introduction to the use of credit scoring and loan rating systems (in the programme of 5 days)

Methodology: Case studies and practical exercises

Public/target: The course is suitable for credit analysts, loan officers, and relationship managers responsible for the development of SME portfolios.

Duration: 3 days and 5 days with the credit scoring​