Introduction

In today's interconnected global economy, the flow of goods and services is powered by complex supply chains, where trade credit plays a pivotal role. The inherent risks associated with this credit—from non-payment to geopolitical instability—require a sophisticated understanding of both traditional and modern risk management techniques. For financial professionals and business leaders, mastering the intricacies of trade credit risk and leveraging innovative supply chain finance solutions are no longer optional, but essential for maintaining operational resilience and competitive advantage. This course is designed to equip you with the strategic insights and practical tools to navigate this critical area of business.

This comprehensive program provides a deep dive into the theoretical and practical aspects of trade credit risk and supply chain finance. You will explore the interconnected nature of these two fields, learning to assess the creditworthiness of trading partners, mitigate payment risk, and implement a range of financing solutions that optimize working capital. The course emphasizes the quantitative and qualitative tools required to analyze a supply chain, from credit scoring models to dynamic discounting and reverse factoring. By the end of this training, you will be proficient in using advanced analytics to make smarter decisions, manage trade credit risk, and unlock significant value within your supply chain.

Duration: 10 Days

Target Audience

• Financial professionals
• Supply chain managers
• Business owners
• Corporate treasury professionals
• Credit analysts
• Risk managers
• Logistics professionals
• Accountants
• Investment bankers
• Legal and compliance officers

Objectives

• Understand the core concepts of trade credit and supply chain finance.
• Master the principles of trade credit risk assessment.
• Analyze the key risk variables in a supply chain.
• Learn to build and validate credit scoring models.
• Use quantitative tools for portfolio optimization.
• Understand the regulatory framework governing these practices.
• Optimize working capital through supply chain finance.
• Develop a framework for supply chain risk analysis.
• Assess the impact of macroeconomic shocks on a supply chain.
• Understand the ethical implications of financial transactions.

Course Modules

Module 1: Foundations of Trade Credit

• The concept of trade credit and its importance
• The difference between open account and letters of credit
• The role of trade credit in a business
• The global landscape of trade credit
• The impact of a changing economic environment

Module 2: Trade Credit Risk Assessment

• The principles of credit risk assessment
• The use of financial statements
• The importance of qualitative factors
• The role of credit ratings
• The challenges of assessing risk in emerging markets

Module 3: Credit Scoring Models

• The principles of a credit scoring model
• The use of statistical methods
• The importance of a reliable dataset
• The validation and back-testing of models
• The challenges of working with limited data

Module 4: Supply Chain Finance Overview

• The concept of supply chain finance
• The types of financing solutions
• The role of technology in finance
• The importance of a collaborative approach
• The impact of automation on supply chains

Module 5: Inventory and Receivables Finance

• The principles of inventory financing
• The role of receivables financing
• The use of factoring and invoice discounting
• The importance of a robust legal framework
• The challenges of a fragmented supply chain

Module 6: Dynamic Discounting and Reverse Factoring

• The concept of dynamic discounting
• The role of reverse factoring
• The benefits for both buyers and suppliers
• The importance of a robust technology platform
• The challenges of implementing these solutions

Module 7: The Regulatory and Legal Landscape

• An introduction to key financial regulations
• The role of regulators in overseeing trade finance
• The legal challenges of cross-border transactions
• The importance of a robust compliance program
• The ethical implications of financial transactions

Module 8: Hedging and Mitigation Strategies

• The types of hedging instruments for trade credit risk
• The use of credit insurance
• The importance of a robust hedging strategy
• The challenges of implementing a dynamic hedging program
• The role of derivatives in managing risk

Module 9: Working Capital Optimization

• The concept of working capital optimization
• The role of supply chain finance in improving cash flow
• The types of optimization techniques
• The importance of a data-driven approach
• The challenges of a rapidly changing market

Module 10: Capstone Project Part 1: Design

• Defining a specific supply chain for analysis
• Mapping the data requirements and model architecture
• Outlining the key technical and analytical requirements
• Creating a detailed project plan
• Presenting the design to a mock review board

Module 11: Capstone Project Part 2: Development

• Implementing a credit scoring model for a chosen supplier
• Using the model to evaluate a sample of transactions
• Analyzing the model's performance on key metrics
• Building a presentation to explain the analysis
• Documenting all assumptions and data sources

Module 12: Capstone Project Part 3: Presentation

• Presenting the full analysis of the chosen supply chain
• Discussing the risks and benefits of the model
• Proposing a plan for model improvement
• Q&A and peer feedback session
• Receiving expert recommendations and insights

Module 13: Emerging Trends

• The use of blockchain in supply chain finance
• The role of AI in risk assessment
• The evolution of trade finance instruments
• The impact of new data sources on risk assessment
• The future of trade finance

Module 14: Case Studies

• A case study of a major corporation's supply chain
• A case study of a small business's trade credit strategy
• A case study of a financial institution's supply chain finance
• The lessons learned from past financial crises
• The importance of a robust framework

Module 15: Course Certification

• A final comprehensive assessment
• A final review of key concepts and objectives
• Issuance of a certificate of completion
• Post-course career guidance and networking
• A final Q&A with instructors

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 10 working days before commencement of the training.