Finance & Leasing AssociationSTART 9.30 - FINISH 13.00
DAY ONE SESSION ONE
Welcome
- Introductions and accomplishment planning
- Purpose and aims of the workshop
Legal Entities
- What is a business and its purpose?
- Characteristics of the main entities: Sole Trader, Partnership, Limited Liability Partnership, Private & Public Limited Companies, Companies Limited by Guarantee, Unlimited Bodies
- Identifying the key differences and assessing the main risk considerations for lenders
Understanding Financial Statements
- The flow of money through a business: recording business transactions
- How is a business funded?
- Financial Statements: concepts and conventions and constituent parts
- Key definitions and terminology: Assets, Liabilities, Capital, Revenue and Expense
- Structure of the Statement of Financial Position (Balance Sheet)
- Structure of the Income Statement (Profit & Loss Account)
End of Session
DAY TWO SESSION TWO
Interpreting Financial Statements
- Tangible and intangible fixed assets, understanding depreciation
- Current assets and current liabilities: working capital management
- Long term commitments: debt serviceability
- Shareholders’ Funds and retained earnings and reserves
- Profit & loss account: profit measures and margins, concept of EBITDA
- The difference between profit & cash
Break
Cash Flow Analysis/Working Capital
- The importance of liquidity
- Detailing the factors that affect cash flow
- The concept of working capital - can it meet obligations?
DAY THREE SESSION THREE
Key Ratio Analysis
- Importance of ratio analysis
- Interpretation of business performance using the power of ratio analysis
- The main ratios: profitability, liquidity, investment
Break
Principles of Lending and Danger Signals
- Risk assessment using different frameworks
- Non-financial risks: asset, customer, external factors
- Assessment of management, competition and market
- What are the warning signs of a business in distress?
- The impact of poor working capital management
End of Session
DAY FOUR SESSION FOUR
Underwriting a Lending Proposal
- Gathering critical information
- Compiling and structuring a persuasive credit report
- Planning the content of a credit report
- Focusing on key financial and non-financial risk analysis
Break
Underwriting a Lending Proposal (Cont.)
- Make a lending decision on the specific case study provided
- Presentation and debrief of underwriting decisions
End of Session and Course
