Financing Small and Medium Enterprises SME's

Course details

In this course, participants get introduced to the role of small and medium enterprises in economic development and bank financing for these enterprises. They will also get trained on how to recognize the risks associated with lending such enterprises, assess and mitigate them.

Target Audience:

This course is directed to all staff working in retail banking or officials responsible for dealing with loans of small and medium enterprises, in banks or institutions.

Course Objectives:

• Define the basic rules and how to communicate and deal effectively in lending small and medium enterprises
• List the different principles for financing small and medium enterprises and assess creditworthiness
• Apply funding mechanisms for small and medium enterprises
• Identify risks associated with lending small and medium enterprises
• Explain the modern principles in marketing and sale of financial products

Course Outline

Module 1:Basic Concepts of Small and Medium Enterprises

• Definition of small and medium enterprises
• Characteristics of small and medium enterprises
• The strategic importance of small and medium enterprises
• The characteristics of entrepreneurs
• Challenges facing small and medium enterprises

Module 2:Principles of Financing Small and Medium Enterprises

• The different methods of financing small and medium enterprises
• The general rules of financing small and medium enterprises
• The elements of the credit study
• Types of loans and different credit facilities
• Credit worthiness – concept and importance
• Loan cycle

Module 3:Mechanisms of Financing Small and Medium Enterprises

• Design and implement the full loan cycle
• The executive mechanisms of loan cycle
• The role of risks and management information systems in the loan cycle
• Identify and measure profits
• The difference between major projects and small and medium enterprises

Module 4:Risks of Financing Small and Medium Enterprises

• Types of banking risks
• The factors that affect the increase in credit risks
• Analysis of small and medium enterprises risks
• Loan portfolio risk management for small enterprises
• Reading management information systems reports (MIS reports)
• Impact of risks on portfolio profits

Module 5:Principles of marketing and Sale

• What is marketing?
• The factors that control markets
• Elements of the marketing mix
• Principles of distinguished sale
• The most important elements of sale art

Assessment Strategy:

Participants will be assessed based on class discussions and an indivdual end of course test.