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Doing Business With SMES

Small and medium-sized enterprises (SMEs) are generally described as “enterprises with a relatively small share of the market, managed by owners or part-owners in a personalized way, and not through the medium of a formalized management structure; and acting as separate entities, in the sense of not forming part of large enterprise or group.” SMEs can be categorized in three groups of micro, small and medium sized enterprises with respect to their employee numbers and annual revenues.
The course approaches knowledge transfers with the idea that: –

The SME segment can be PROFITABLY served provided it is PROPERLY understood.
A Bank is in business to make money and not necessarily to lend money.

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Target Group

Credit Administrators
Credit Risk Managers
Credit Analysts
Relationship Officers
Branch Managers

Objectives

At the end of the training programme, the participant will be able to:

Identify and evaluate banking opportunities and risk in various business models used by SMEs.
Approach the evaluation of the creditworthiness of an SME customer by using a structured and systematic approach, even in the absence of the customers audited financials.
On the basis of his/her understanding of the business model of an SME customer, offer a suite of banking products which provide a favourable risk/reward benefit to the bank.

Pre-requisite

Basic understanding of company financial information will be an advantage.

COURSE OUTLINE

Lending to SMEs – The Context
1. Forms of Business Organizations
2. Defining SMEs – The key issues
3. The Business Characteristics of SMEs
4. The Challenges to Doing Business with SMEs
5. Serving the SME Customer Better…
The Credit Appraisal Framework – A structured approach to lending to SMEs
Analyzing the External Business Environment
Industry Value Chains and SMEs
Analyzing the Internal Business Environment
1. SME Business Models
2. Business Growth Stages
3. Assessing Management Quality
Developing Financial Expectations
The Asset Conversion Cycle and Historical Cash Flows
Cash Flow Projections
Identifying Borrowing Needs
Structuring solutions
Limit Applications Write-ups
Causes of Small Business Failure
Minimizing Loan Losses Through Effective Credit Monitoring

Length / Duration

4 Days

Starting Date

03/09/2019

Ending Date

22/10/2019

Skill Family

Commercial Lending

Skill Level

Intermediate

Format

Facilitator-led training, multimedia with Case Studies, Assessment

Delivery Source

NBC and External Consultants

Language

English

Post Course Assessment

Yes

Certification

Certificate of Participation and Certificate of Proficiency