Credit, as you already know, is an arrangement to receive cash, goods or services now and pay for them in the future. Consumer Credit refers to the use of credit for personal needs by individuals and families as contrasted to credit used for business or agricultural purposes.

Course fees R 2,570 ex VAT per delegate.

Grantors of trade credit are responsible for determining this element of trust between debtor and supplier. This needs to be fully established before extending any credit agreement and future terms for payment. It is an onerous task which carries immense responsibility. Failure to execute in the absence of total care and due diligence will most certainly result in financial loss to the business.

Fees R 2,550 ex VAT per delegate.

Initially money or coins did not exist during the earliest stages of history. Trade was first based on the barter system, where a farmer, for example, would negotiate and give so much grain for a goat. An often-engaged form of credit and investment, especially in the Italian city-states, was called the sea loan, which started previously in Greek and Roman antiquity. The borrower or merchant would promise the return of the loan to the creditor only on the condition the ship carrying the goods purchased with the borrowed money safely completed its voyage. Each individual shared part of the risk of the voyage. If the voyage was successful, the creditor received a substantial bonus of twenty or thirty percent above his initial investment. If the ship was lost at sea, a common occurrence, the creditor lost everything.

Fees R 2,550 ex VAT per delegate.

Working Capital is made up of the following three broad components: Stock (Inventory), Debtors (Accounts Receivable), and Creditors (Accounts Payable). The equation for Working Capital is: Stock plus Debtors less Creditors. Looked at from a cash flow perspective this means that you as the Supplier must fund Stock and Debtors but get relief from what Creditor financing you have arranged. Therefore, increased working capital comes about when Stock or Debtors increase, while Creditors remain the same or decrease. In this module we will only look at the impact an increase in debtors will cause on Working Capital.

Fees R 2,550 ex VAT per Delegate.

• Management of the Balance Sheet
  a) Understand where the Provision for Doubtful Debts is disclosed on the Balance Sheet
  b) Understand the impact of Working Capital on the Balance Sheet
  c) Understand the metric of the Cash Operation Cycle
  d) Understand the setting up of Debtor Cash Budgets
  e) Understand the setting up of Working Capital Budgets
  f) Understand the relationship between Working Capital Budgets, Fixed Assets (CAPEX) Budgets and the overall impact of funding requirements.
• Fees R 2,550 ex VAT.