Advanced Cash Flow Analysis and Lending

Code	:	ACFA
Objective	:	To provide banking and financial executives with an understanding of corporate cash flows and a framework for assessing business cash flow in support of credit decisions.
Participants	:	All credit executives with responsibilities for cash flow assessment and loan review
Methodology	:	Case studies, instructor led discussions and scenario analysis.
Duration	:	2 days

Course Outline

I.	Introduction to cash flow analysis and credit risk a. Objective of cash flow analysis b. Historical cash flows c. Forecast cash flows
II.	Historical cash flow statements a. Structure of historical cash flow statements i.Sources of cash flows ii.Cash flow utilization b. Analyzing historical cash flows i.Debt servicing experience ii.Cash flow composition iii.Cash flow policy and strategies iv.Cash flow indicators
III.	Forecast cash flows and volatility a. Structure of cash flow projections i.Forecast revenue and composition ii.Forecast expenditure and composition b. Basis of cash flow projections c. Debt servicing capacity d. Testing cash flow projections
IV.	Qualitative assessment of cash flow forecast a. Economic and political environment b. Management policy and strategies c. Business and operational capacity