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Updated in [July 17th, 2023]
This course, Fundamentals of Credit Management, is designed to help credit managers find worthy borrowers and set practical credit repayment terms and conditions. It begins with the basics of credit management, such as checking the borrower's credentials, capital and character, which will help understand their willingness and capacity to repay the credit. The role of the credit officer is also discussed, including analysing and verifying all data provided by the borrower, undertaking due diligence at each step and evaluating the underlying risk of financing before making a final decision. The principles of lending, banking risks and their types, due diligence and various types of borrowers are also covered. The income statement and its importance in the business, the business's work operating cycle, ratios, working capital loans and drawing power are also discussed. Finally, the course covers the importance of credit management, how it can improve cash flow and reduce the rate of late credit payments in the company. Upon completion of this course, participants will have the necessary knowledge and skills to manage credit, which will help maintain strong cash flow in the company and obtain security interests where necessary.
Course Syllabus
Principles of Lending and Types of Borrowers
In this module, you will be introduced to credit management, you will learn the roles of a credit officer which includes finding quality borrowers, you will also learn how banks risk zones and you will be taught negative future risks can be mitigated suing due diligence, you will learn about the hybrid companies and important features of a company.Understanding Financial Statements, Balance Sheets and Ratio Analysis
In this module, you will be taught the importance of an income statement in any business or company and you will learn how to analyze and interpret an income statement, you will be introduced to ratio analysis and its types which includes liquidity ratio and solvency ratio and you will also learn how it helps investors make the right investment.Working Capital Loan and Appraisal of Term Loan
In this module, you will learn the concept of working capital loan and working capital cycle and you will be introduced to term loans where you will learn about the depreciation of assets and also how banks draw up repayment schedules, you will also learn about term loan proposals and how to access proposals.Course assessment
