Behavioral Finance for SME & Mid corporate

This structured program deals with the credit evaluation process: understanding the behavioral aspect of credit, linking stories with financial performance as reported by the borrower, use of internal and external data to validate behavioral phenomena of SME and mid corporate borrower. Building up of data driven model for estimating the probability of default of the borrower by using behavioral triggers

Benefits:

• Participants will gain the ability to build up the newest skill sets required for application of behavioral finance in estimating credit default process
• They will also develop skillset required to develop their own in-house model for predicting default by tracking behavioral data of the customer

Basic Credit

Online Course

Duration: 4 Hours

Objective

In this module students will learn what is credit all about, and about the different lending products (term loan, cash credit, working capital etc.) borrowers can access. Participants will also learn step-by-step process on creating balance sheet and profit loss account explained through live demonstration of real life entries.

Topics covered

1.  What is credit in Banking
2. Lending products available for borrower
3. Understanding Balance sheet entries
4. Understanding Profit & Loss entries

Course Benefits:

After completing this module participants will be able to:

1.  Understand credit and different lending products available for borrowers
2. Create Balance sheet
3. Create Profit & Loss statement

Analytical framework for selection of borrowers

Online Course

Duration: 4 Hr

Objective

Borrower selection is a very important first step in lending process. In this module participants will learn various methods to select right borrowers by doing qualitative and quantitative analysis of borrower.

Topics covered

1.  Qualitative analysis of borrower
2. Judgment of Intention
3. Borrower Intention (Business credentials, Reputation, Business Importance, Collateral security and Business need)
4. Business model evaluation
5.  Assessing borrower’s business model (Economic outlook, Industry factors, Business processes)

Quantitative analysis of borrower

1. Document verification checklist & verification of documents
2. Loan application form
3. Audited financials along with auditors and directors report
4. Tax audit report
5. Bank statement
6. VAT return/Service tax return
7. List of debtors and creditors
8. Proposed Business plan
9. Security related documents
10. Personal net worth statement of the borrower

Benefits of the course:

After completing this module participants will be able to:

1. Evaluate borrowers ability to repay the loan
2. Evaluate business model of borrower
3. Detect fake sales with unique and simple tricks
4. Detect intention of borrowers

Analysis of Financial Statement

Online Course

Duration – 4 hours

Objective

Real life financial statements are often challenged by complex entries. This necessitates in depth analysis of financial statement. In this module students will gain analytical insight needed to analyze financial statements and detect early warning signal for default of borrower. 

Topics covered

1. Financial statement verification

• Analysis of numbers in financial statement
• Checking the sales figure
• Credit summation of Bank
• Debtor Creditor list
• Detecting Inflated/Deflated sales

2. Checking Financial statement position

• Ratio Analysis and its implications
• Cash Flow Analysis and its implications
• Understanding company perfomance and capability to repay the loan

Benefits of the course:

After completing this module participants will be able to:

1. Improve analytical capabilities of financial statement analysis
2. Evaluate company’s ratio and cash flow
3. Detect red flags form financial statement verification, ratio analysis and cash flow analysis

Fund Based Working Capital

Online Course

Duration: 4hr

Objective

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

Benefits of the course:

After completing this module participants will be able to:

1. Understand the need of working capital loans
2. Recognize borrowers funding need and ask meaningful 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

Term Loans

Online Course

Duration- 4 hours

Objective

In this module participants will learn the reason for term loan, the situations when term loan is appropriate, disbursing the loan and steps to monitor the loan. Upon completion of this module participants will be able to link the term loan with over all fund requirement.

Topics covered

1. Feature and purpose of term loan
2. Components of Term Loan
3. Process of Assessment of Term Loan
4. Pre Disbursement Process of Term Loan
5. Post Disbursement Process of Term Loan
6. Monitoring Steps of Term Loan

Benefits of the course:

After completing this module participants will be able to:

1. Evaluate the loan proposal
2. Decide to fund the borrower
3. Monitor the loan to prevent it from becoming NPA