Loan Administration and Troubled Credit Workouts

The workshop will equip participants with credit skills required for booking of recoverable credit, identify potential credit failure and acquire the right skill for recovering bad credit when they inevitably occur.

Fundamentals of loan administration and accounting

•         Effective cash planning including preparation and analysis of cash-flow statements
•         Identifying financial gaps resulting from loan default
•         Financing financial deficit
•         Cost of capital issues on loan administration
•         Managing inflation and tax implications in loan administration

Loan administration in a depressed economy

•         Loan portfolio management
•         Resolving the liquidity and profitability tangle in loan administration
•         Formulation of sound investment policies to reduce cost effect of loan failures
•         Establishing sound collection policy, credit limits, sectoral allocation etc
•         Loan restructuring in default cases including period review, waivers, roll-overs, write backs, write-offs etc.

Loan analysis techniques

•         Understanding focus, Canon, policies etc
•         Examination of feasibility studies and status reports
•         Packaging loan agreements
•         Analysis of financial reports
•         Symptoms for debtor’s weakness resulting from monitoring

Securities for loan

•         Types
•         Perfection
•         Realization

Debt recovery strategies including legal processes

•         Internal efforts
•         Use of law enforcement agents
•         Use of professionals
•         Court option and enforcement of court orders
•         Decided cases
•         Options in the arbitration and conciliation decree 1988

Psychological aspects of loan administration

•         Fundamentals of credit psychology
•         Psychology and credit policy formation
•         Psychology in criminalizing debt recovery against debtors
•         Studying and understanding debtor’s
•         psychology and legal right
•         The psychology of corporate failure resulting from poor credit management

Loan services collection strategies

•         How to turn receivables into cash
•         Collecting without hurting difficult customers
•         Collection management psychology
•         Managing the collection stress factor
•         When to hire a collection agency
•         Obstacles to collection
•         Practical issues

TRAINING METHODOLOGY

The training methodology combines lectures, discussions, group exercises and illustrations. Participants will gain both theoretical and practical knowledge of the topics. The emphasis is on the practical application of the topics and as a result participant will go back to the workplace with both the ability and the confidence to apply the techniques learned to their duties.