Structuring Working Capital Lines
- Finance & Investment
This module is conducted in-person.
2 days
Weekdays (9am - 5pm)
Who Should Attend
- New hires and management associates in banking
- Professionals in banking and corporate responsible for extending credit to borrowers
- Sales, relationship managers, product specialists and those in support functions, looking to deepen their understanding of corporate lending and credit risk
Overview
This workshop aims to provide a structured approach to develop core competencies in structuring working capital lines for corporate clients. Participants will learn to identify key risks of methods of payments and understand the impact of capital adequacy requirements on commercial lending and trade finance. Participants are taught the key components of a company’s working capital cycle and how to structure short term lines such as import and export lines, FX lines and bank guarantees.
Learning Objectives
- Outline the risks of various methods of payments in international trade transactions
- Understand the role of the bank and related trade finance products under various methods of payment
- Understand the regulatory capital requirements and their impact on commercial lending and trade finance
- Understand the components of a company’s working capital cycle
- Determine the working capital requirements and trade finance facilities needed by a company
- Learn how to structure appropriate short term import and export lines including FX products
- Know the key differences in funding options such as factoring and traditional bank lines
- Understand the differences between bankers guarantees and standby letters of credit
Topic/Structure
- Risks of various methods of payments in international trade transactions
- Open account
- Documentary collection
- Documentary credit
- Bank’s role under various methods of payment
- Document processing
- Risk mitigation
- Financing
- Regulatory capital requirements and benefits of structuring appropriate credit lines
- Overview of the Basel Accord
- Impact of capital adequacy requirements on commercial lending and trade finance
- Components of a company’s working capital cycle
- Key drivers of cash needs
- Determining a company’s working capital requirement
- Cash tied up in inventories
- Cash tied in receivables
- Amount of spontaneous financing available
- Structuring appropriate short-term credit lines
- Import lines comprising
- LC lines
- Import financing under various methods of payments
- Shipping guarantees
- Export lines comprising
- LC Negotiation
- Forfaiting/ Discounting
- Export financing under various methods of payments
- General working capital lines
- FX Lines for hedging currency risks
- Bank guarantee lines to support project related requirements
- Import lines comprising
- Differences between factoring vs traditional bank lines.
- Banker’s guarantee vs standby letter of credit
Assessment
As part of the requirement for SkillsFuture Singapore, there will be an assessment conducted at the end of the course. The mode of assessment, which is up to the trainer’s discretion, may be an online quiz, a presentation or based on classroom exercises.
Participants are required to attain a minimum of 75% attendance and pass the associated assessment in order to receive a digital Certificate of Completion issued by Singapore Management University.
Calculate Programme Fee
Fee Table
| COMPANY-SPONSORED | |||
|
PARTICIPANT PROFILE |
SELF-SPONSORED |
SME |
NON-SME |
|
Singapore Citizen < 40 years old Permanent Resident LTVP+
|
$654 (After SSG Funding 70%) |
$254 (After SSG Funding 70% |
$654 (After SSG Funding 70%) |
|
Singapore Citizen ≥ 40 years old |
$254 (After SSG Funding 70% |
$254 (After SSG Funding 70% |
$254 (After SSG Funding 70% |
|
International Participant |
$2,180 (No Funding) |
$2,180 (No Funding) |
$2,180 (No Funding) |
All prices include 9% GST
Please note that the programme fees are subject to change without prior notice.
Post Secondary Education Account (PSEA)
PSEA can be utilised for subsidised programmes eligible for SkillsFuture Credit support. Click here to find out more.
Self Sponsored
SkillsFuture Credit
Singapore Citizens aged 25 and above may use their SkillsFuture Credits to pay for the course fees. The credits may be used on top of existing course fee funding.
This is only applicable to self-sponsored participants. Application to utilise SkillsFuture Credits can be submitted when making payment for the course via the SMU Academy TMS Portal, and can only be made within 60 days of course start date.
Please click here for more information on the SkillsFuture Credit. For help in submitting an SFC claim, you may wish to refer to our step-by-step guide on claiming SkillsFuture Credits (Individual).Workfare Skills Support Scheme
From 1 July 2023, the Workfare Skills Support (WSS) scheme has been enhanced. Please click here for more details.
Company Sponsored
Enhanced Training Support for SMEs (ETSS)
- Organisation must be registered or incorporated in Singapore
- Employment size of not more than 200 or with annual sales turnover of not more than $100 million
- Trainees must be hired in accordance with the Employment Act and fully sponsored by their employers for the course
- Trainees must be Singapore Citizens or Singapore Permanent Residents
- Trainees must not be a full-time national serviceman
- Trainees are eligible for ETSS funding only if their company's SME status is approved prior to the course commencement date. To verify your SME's status, please click here.
Please click here for more information on ETSS.
Absentee Payroll
Companies who sponsor their employees for the course may apply for Absentee Payroll here. For more information, please refer to:
AP Guide (Non-SME Companies)
Declaration Guide (SME Companies)
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