Credit Management Training Course

This course equips participants with practical skills to evaluate credit risk, structure credit facilities, and manage credit exposure effectively. It focuses on credit analysis, lending decisions, monitoring, collections, and credit policy for banks and businesses.

Target Groups

• Credit analysts and officers
• Relationship and loan managers
• Credit controllers in commercial firms
• Collections and recovery staff
• Finance managers and accountants
• Staff of microfinance institutions and SACCOs
• Managers and supervisors seeking to strengthen organizational practice in this field
• Consultants and professionals supporting related organizations

Course Objectives

By the end of this course, participants will be able to:

• Explain the credit management cycle
• Assess borrower creditworthiness using the five Cs
• Analyze financial statements and cash flows for credit decisions
• Structure appropriate credit facilities
• Price credit according to risk
• Prepare credit proposals and approval papers
• Monitor accounts and detect early warning signals
• Apply collateral and guarantee principles
• Manage collections and recovery
• Develop and apply credit policy

Course Modules

Module 1: Introduction to Credit Management

• Credit cycle and functions
• Types of credit
• Credit risk concepts
• Credit policy and appetite
• Roles in credit management

Module 2: Credit Analysis Fundamentals

• Five Cs of credit
• Borrower and industry analysis
• Management and character assessment
• Purpose of the loan
• Sources of repayment

Module 3: Financial Statement and Cash Flow Analysis

• Ratio analysis
• Cash flow and debt service capacity
• Quality of financial information
• Projections review
• Spotting warning signs

Module 4: Structuring Credit Facilities

• Term loans, overdrafts, and trade finance
• Facility structure and tenor
• Covenants and conditions
• Repayment structuring
• Pricing for risk

Module 5: Collateral and Security

• Types of security
• Valuation principles
• Guarantees and indemnities
• Legal considerations
• Security monitoring

Module 6: Credit Proposals and Approval

• Credit paper structure
• Risk grading
• Recommendations and mitigants
• Approval authorities
• Credit committee processes

Module 7: Credit Monitoring and Early Warning

• Account monitoring
• Early warning indicators
• Annual reviews
• Watch-list actions
• Site visits

Module 8: Collections and Recovery

• Collections strategy
• Customer negotiation
• Restructuring options
• Legal recovery
• Write-offs

Module 9: Credit Risk Management Frameworks

• Portfolio risk basics
• Concentration limits
• Provisioning concepts
• Credit scoring
• Regulatory expectations

Module 10: Practical Exercises and Capstone Project

• Analyzing a borrower case file
• Structuring a facility
• Writing a credit proposal
• Identifying early warning signs in a monitoring exercise
• Presenting a recommendation to a mock credit committee