Management of Working Capital and Debtors

Management of Working Capital and Debtors

Course Description

Introduction

Welcome to the "Management of Working Capital and Debtors" training course, meticulously crafted by Cambridge for Global Training. In today's dynamic business landscape, effective management of working capital and debtors is crucial for sustaining financial health and fostering growth. This comprehensive course is designed to equip participants with the knowledge, tools, and strategies necessary to optimise working capital, mitigate risks associated with debtors, and enhance overall financial performance. Whether you're a finance professional seeking to deepen your expertise or a business owner aiming to improve cash flow management, this course provides valuable insights and practical skills to navigate the complexities of working capital and debt management successfully.

Course Objectives

By the end of the course, participants will be able to:

• Understand the importance of working capital management in achieving financial stability and sustainable growth.
• Learn techniques to evaluate and improve liquidity ratios to ensure efficient utilisation of resources.
• Develop strategies to minimise debtor defaults and enhance cash flow through effective debtor management.
• Gain insights into inventory management practices to optimise working capital and reduce carrying costs.
• Acquire knowledge of short-term financing options and leverage techniques to meet working capital requirements cost-effectively.
• Explore risk management strategies to mitigate the impact of economic fluctuations and market uncertainties on working capital.
• Apply financial modelling tools and techniques to analyse working capital trends, forecast future cash flows, and make informed business decisions.

Who Should Attend

• Financial Managers and Analysts
• Treasury Professionals
• Credit Managers
• Business Owners and Entrepreneurs
• Accounting and Finance Executives
• Consultants and Advisors
• Anyone interested in enhancing their understanding of working capital management and debtor control.

Course Outline

Unit 1: Fundamentals of Working Capital Management

• Importance of working capital
• Components of working capital
• Working capital cycle
• Factors influencing working capital requirements
• Techniques to assess working capital needs

Unit 2: Debtor Analysis and Credit Policies

• Evaluating debtor creditworthiness
• Establishing credit policies
• Monitoring debtor performance
• Strategies to reduce debtor defaults
• Implementing effective credit control measures

Unit 3: Inventory Management Techniques

• Types of inventory
• Inventory valuation methods
• Inventory turnover ratio
• Just-in-Time (JIT) inventory system
• Inventory management best practices

Unit 4: Short-term Financing Options

• Overview of short-term financing
• Types of short-term financing instruments
• Factors influencing choice of financing
• Costs and benefits of short-term financing
• Managing risks associated with short-term borrowing

Unit 5: Risk Management and Financial Modelling

• Identifying and assessing financial risks
• Hedging techniques for working capital risks
• Introduction to financial modelling
• Forecasting cash flows
• Utilising financial models for decision-making.