Cash Flow Management in Microfinance

Overview

focuses on the critical aspects of cash flow management and working capital in microfinance institutions to enable them to achieve their objectives more effectively. It includes understanding how to prepare cash flow statements and forecasts, as well as utilizing various models to predict future cash flows.

Main Topics

• The Importance of Cash Flow Statements in Microfinance.
• The Role of Cash Flow Statements for Lenders.
• Accrual Basis vs. Cash Flow Basis.
• Credit Assessment Models in Microfinance.
• Key Financial Statements and Preparation Methods.
• Fundamentals of Cash Flow Statements.
• Preparation of Cash Flow Statements Using the Direct Method.
• Preparation of Cash Flow Statements Using the Indirect Method.
• Analyzing Cash Flow Statements.
• Key Considerations When Analyzing Cash Flow Statements.
• Building and Evaluating Future Cash Flows: Assessing Loan Repayment Capacity.
• Loan Structuring: Designing Loan Terms and Conditions.

Objectives

• Understand the Importance of Cash Flows in Microfinance: Analyze cash flows to support decision-making.
• Highlight Cash Flows for Lenders: Evaluate repayment capacity and minimize risks.
• Differentiate Between Accrual and Cash Flow Basis: Distinguish between transaction timing and actual cash movement.
• Learn Credit Assessment Models: Analyze cash flows, collateral, and stability.
• Master Key Financial Statements: Prepare income statements, balance sheets, and cash flow statements.
• Grasp the Fundamentals of Cash Flows: Record and categorize cash transactions.
• Prepare Cash Flows Using Direct Method: Record direct cash inflows and outflows.
• Prepare Cash Flows Using Indirect Method: Analyze profits and losses to derive cash flow.
• Analyze Cash Flows: Assess liquidity and financial resilience.
• Design Loan Structures: Develop terms and conditions for loans.

Target Audience

• Financial Controllers.
• Financial Analysts.
• Business Development Managers.
• Management Accountants.