Fund Based Working Capital

Overview/Objectives

In this module participants will learn about working capital cycle, the determinants of working capital finance, types of working capital assessment methods and application of  the same to different borrowers.

Topics covered

  1. Working capital - Definition
  2. Working capital – Characteristics
  3. Working capital Terminology
  4. Working capital Requirement
  5. Working capital method of assessment
  6. Fund based WC Need assessment
  7. Fund based WC Need assessment – Alternative method
  8. MPBF operating cycle method
  9. MPBF operating cycle method – CMA format
  10. MPBF – CMA method
  11. MPBF: Preparing estimates & projections using CMA format
  12. CMA Form IV – Analysis of CA & OCL
  13. MPBF Assessment Form V & Form VI
  14. Cash Budget method of assessment
  15. Turnover Method

Course Benefits

After completing this module participants will be able to:

  1. Understand the need of working capital loans
  2. Recognize borrowers funding need and ask meaningfull questions about the business
  3. Pitch right product to borrower, rather than blindly selling the product
  4. Understand in detail the fund based working capital assessment process
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