Learning Objectives
By the end of this module, you will be able to:
Understand the Importance of Working Capital in Commercial Lending
Learn how working capital impacts a client’s liquidity, operational efficiency, and ability to meet short-term obligations
Understand why it is a key focus for credit analysts when assessing credit risk and structuring facilities accordingly
Analyse and Optimise the Cash Conversion Cycle (CCC)
Break down the CCC into Days Inventory Outstanding (DIO), Days Sales Outstanding (DSO), and Days Payables Outstanding (DPO).
Use these insights to measure operational efficiency and compare performance against industry benchmarks
Identify Working Capital Risks and Recommend Improvements
Spot earning warning signs such as slow collections, excessive inventory, or extended payables.
Understand practical client strategies to improve working capital, such as faster collections, inventory reduction, or supplier negotiations
Structure Lending Solutions for Working Capital Needs
Design financing structures aligned with the client’s working capital cycle and seasonality
Apply appropriate facilities such as overdrafts, invoice finance, inventory funding, or trade finance solutions
Apply Your Knowledge to Real-World Lending Scenarios
Practise working capital assessment through commercial case studies and exercises
Use your insights to support sound credit recommendations
