Basics of Credit Management- A Conceptual & Practical Approach

The course is meant for whom?

• This course is ideally suited for bankers and finance professionals who want to advance in their careers

• This course is for those individuals who have discovered their weaknesses and gaps in knowledge and skills and wish to overcome them.
• This course is also suited for students of Commerce and Finance to develop their insights and skills in banking

You’ll learn in this course:

• Banking Risks and Lending Principles
• Due Diligence in Credit
• Feasibility and Viability Study
• The legal aspects of Sole Proprietorship, Partnership Firm, and Company
• The Borrowing Powers of a Company
• Financial Statements
• Balance Sheet Structure and Its Concepts
• Income Statement
• How to Analyse an Income Statement
• Ratio Analysis and How to Analyse a Financial Statement
• Computation of Working Capital Loan by Applying Turnover Method and MPBF Methods by a banker
• Term Loan Characteristics
• DSCR Concept as a whole, and applying a bank’s benchmark ratio for decision-making
• Break-Even Analysis
• How to Prepare a Depreciation Schedule
• How to Calculate Repayment Schedule
• How to calculate Insurance Premium.
• How to process a Term Loan through case studies
• How to make credit decisions by applying a bank’s benchmark ratios

Please attempt the following questions:

• Question 1.  Do you find difficulty in understanding banking, credit and finance matters? 

• Question 2.  Are you comfortable with Balance Sheet Analysis, Profitability Analysis, Ratio Analysis, DSCR, Working Capital Assessment, Term Loan Appraisal, etc.?

• Question 3.  Are you a student of commerce or finance preparing for your exams? 

• Question 4. Are you a Branch Head or a Credit Officer working in a bank or a finance company, engaged in creating a quality loan portfolio? 

If your answer to the above questions is ‘Yes, then this course is meant for you.

How will you benefit from this course?

This course will help you to rise in your career. It will help you to understand the fundamentals of credit, legal aspects, and finance-related aspects and also prepare you to work out the financial statements and analyse them, all by yourself. The focus of this course is to clear the concepts and take you to the world of financial statements and their analysis. You will learn to work out financial statements and analysis through ratios hands down in Excel format, and take credit decisions as per the bank’s benchmark. The Course is a blend of Conceptual and Practical aspects of Credit Management.

How is this course different?

• Focus on banking concepts with Practical Inputs
• Focus on Legal Concepts
• Focus on Finance Concepts with Case Studies
• Step-by-step calculation of Financial Statements in Excel with Analysis
• Step-by-step calculation of Financial Ratios in Excel with Interpretation
• Helps you to decide on a Loan Proposal based on your findings and the Bank’s Financial Benchmarks

How is the course designed?

The course is divided into 10 sections, with several lectures in each section:

• The 1st Section deals with Principles of Lending, containing 6 lectures. Here you will learn the Banking Risks and Lending Principles, Due Diligence in Credit, the 3 Cs and 6 Ps of the Borrower, and the MASTDAY Principle on Security Feasibility and Viability Study

• The 2nd Section deals with Different types of Borrowers and contains 6 Lectures. Here you will learn the legal aspects related to Individual Businesses, Sole Proprietorship Firms, Partnership Firms, Public Limited and Private Limited Companies, One Person Companies and Limited Liability Companies

• The 3rd section deals exclusively with the Borrowing Powers of Companies.

• The 4th section deals with different Financial Statements.

• The 5th section deals with Balance Sheet Concepts, containing 3 lectures. You will learn with examples the Balance Sheet Structure and its interrelationships, the calculation of Reserves and Surplus, the Concept of Depreciation and its calculation, the concept of Gross Block and Net Block, and concepts of Intangible Assets, Investments, and Current Assets.

• The 6th section deals with Income statements in detail and their analysis with examples and case studies in 2 lectures.

• The 7th section deals with Ratio Analysis and its Interpretation in 7 lectures. Here you will learn about the Ratios in general and as Liquidity Ratios, Solvency Ratios, Turnover Ratios, and Profitability Ratios, with hands-on work with case studies in Excel format. In the end, you will find an interpretation of the Ratios with case studies.

• The 8th section deals with the Assessment of Working Capital Loans, containing 5 lectures. Here you will learn the concepts of Working Capital, the Working Capital Cycle, the interrelation of Margin and Drawing Power with CC Limit, the Turnover Method of computation, and MPBF Methods of Assessment with case studies.

• The 9th section deals with Term Loan Appraisal, containing 7 lectures. You will learn the concept of Term loans, the Calculation of Depreciation, working out the Repayment Schedule, the Insurance Schedule, the Concept of DSCR and its calculation, the working Security Coverage Ratio, the Concept of Break-Even and its Analysis with Case Studies.

• Finally, in the 10th section, you will find a Term Loan Case Study in 7 lectures with hands-on working of Project Cost and Means of Finance, various schedules, Profit & Loss Account, DSCR, Reserves and Surplus, Cash Flow Statement, and Balance Sheet.

By the end of this course, you will have learned the fundamentals of credit, legal aspects, and finance-related aspects.

Get started today and learn more about credit management & financial management