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Determining Business Financing Need

Course Overview

Different industries have different optimum working capital profiles, reflecting their methods of doing business and what they are selling. Working capital needs also fluctuate during the year. The amount of funds tied up in working capital would not typically be a constant figure throughout the year. Only in the most unusual of businesses would there be a constant need for working capital funding.

For most businesses there would be weekly fluctuations. Many businesses operate in industries that have seasonal changes in demand. This means that sales, stocks, debtors, etc. would be at higher levels at some predictable times of the year than at others. The better a company manages its working capital, the less the company needs to borrow.

Analyzing a company’s working capital can provide excellent insight into how well a company handles its cash, and whether it is likely to have any on hand to fund growth and contribute to shareholder value. Most businesses cannot finance the operating cycle (accounts receivable days + inventory days) with accounts payable financing alone. Consequently, working capital financing is needed. This shortfall is typically covered by the net profits generated internally or by externally borrowed funds or by a combination of the two.


How Will I Benefit?

Upon completion of the course you should be able to:

  • Help businesses to assess objectively their financing need when applying for financing from financial institutions such as banks
  • Help banks to make right financing decision for their clients
  • Understand the working capital concept
  • Understand the trade-off between liquidity and profitability
  • Understand the relationship between cash cycle and financing need
  • Assess the working capital risk
  • Understand the importance of good WCM to business sustainability

What Will I Learn?

The course will introduce to you important concepts and tools of assessing a business financing need including:

  • Sources of working capital financing
  • Working capital management (WCM)
  • Investment decision vs. financing decision in WCM
  • Matching principle of WCM
  • WC measures (liquidity and Asset management measures)
  • Cash conversion cycle
  • Assessment of WC financing need (Cash flow and Asset conversion cycle method)
  • Overtrading and its risk

Who Should Attend?

The course is designed for:

  • Bank Managers
  • Credit Managers/Officers
  • Loan processing officers/executives
  • Business owners
  • Entrepreneurs

Course Fee

Option 1:

USD$4,550 per group up to 25 persons

Option 2:

USD$250 per person with a minimum of 10 persons and maximum 25 persons

Price is inclusive of training materials and certificate. All other incidental costs including traveling (transport and lodging), F&B, training, stationery & printing, and training room& facilities will be borne by the client. Terms and mode of payment will be discussed upon confirmation.

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