PROBLEM LOANS: WARNING SIGNALS, ASSESSMENTS & RECOVERY
Registrations are closed
Live-Online Training: N166,625
Classroom Training: N 247,250
3 - 4 participants: 5% discount
5 or more participants: 10% discount
(Available also for Customised Training by Duration, Venue & Fee)
Course Contents
DAY ONE
Introduction - Why Businesses Fail in General
- Defining a failed business
- Macroeconomic instability
- Political instability
- Declining industry
- Financial stress
- Failure of strategy.
Failures of Specific Companies
- Weak Financial Structure
- high gearing
- poor liquidity
- high operating costs/low margin
- cash consumer - poor cash flow
- financial mismatch
- Overtrading
- emphasis on growth and not profit
- Poor Leadership and Management
- Poor Information Management System
- Acquisition/Diversification
- Too big a project.
DAY TWO
Problem Loans - When and Where to Look
- Customer Personal Information
- Financial Information
- Management Information
- External Information
Branch Information
- Excesses
- Increasing hard core in outstandings
- Returned instruments
- Overdue items
- Reduced turnover on account
- Withdrawals in large amounts.
Security
- Value of security going down
- Kite-flying
- Poor reporting on secured assets
- Many requests for bank information
DAY THREE
Personal Bank Information
- Elusive head or manager
- Request to release security
- Request to release personal guarantees
Customer Personal Customer Information
- Request for increased in facility
- Supplier payment pressure
- Old stock
- Poor staff morale
- Changes in key staff/management
Financial Information
- Sudden losses
- Substantial decrease in net worth
- Substantial decrease in liquidity
- Deteriorating ratios
- Late submission of financials
- Auditors qualified opinions
- Change of auditors
- Change in valuation of assets
- Window dressing
- Drop in trade creditors
- Sale and lease-back of assets.
DAY FOUR
Management Information
- Current performance information not available
- Current performance information cannot be prepared
- Inflated management ideas about current profitability
- Underestimated management ideas about current liability
- Sensitivity analysis poorly or not done
- Targets consistently not met
- Poor or no costing system.
External Information
- Troubled industry or sector
- Unfavourable market information
- Increased borrowing from other banks
- Security given to other banks/creditors
- Suspicion on information from other banks
- Ratings downgraded.