e-Learning: SME-Finance in Germany

Detailed programme

After receiving your personal access data it is possible for you to work on the units as often as you want for three month

Unit 1: Introduction to SME in Germany

• Definition and segmentation of SMEs in Germany
• Overview of current economic climate and business outlook in Germany
• Success factors of German Corporate/SME-Industry ("Hidden champions")

By the end of this unit participants...
...know how SMEs are defined in Germany,
... have an overview of the economic climate in Germany and challenges ahead,
... have learned how SMEs can operate successfully in different industries

Unit 2: General Corporate Banking Products for SME

• Classical short-term- and long-term financing of working capital and capex
• Off-balance-sheet financing, hybrids and Mezzanine-Finance
• Different side-businesses (opportunities for cross selling)

By the end of this unit participants...
... are familiar with the main short- and long-term financing instruments,
... know the fundamentals of hybrids and Off balance-sheet financing,
... have elaborated on the main cross selling instruments when working with SMEs

Excurse: Overview and present issues of German banking market

• The 3 pillars in Germany are leading to fragmentation, consolidation and competition
• Market environment with negative interest rates, ECB-policy
• "Too much money and too little deals"

By the end of this unit participants...
... have gained an understanding why the German banking market is highly competitive,
... have an overview about the present issues of the German banking industry

Unit 3: General aspects of Corporate/SME-Financing

• Preconditions for credit approvals
• Benefits of financial management/-planning

By the end of this unit participants...
... can verify the priorities for Banks’ credit approvals,
... have learned the advantages which can be obtained from a comprehensive financial planning

Unit 4: Corporate/SME-Financing in a changing and challenging environment

• Regulatory requirements, deleveraging of banks’ balance sheets, need for a new bank approach, "new players on the market"
• Chances and several success factors for banks in SME business achieving house/-core bank status

By the end of this unit participants...
... have understood the ongoing "change process" on financial markets,
... can proof evidence about the potential to develop SME-business in a positive and profitable way

Unit 5: Common collateral in SME-Financing

• Mortgage on properties and different types of interestPledge of machinery / equipment
• Pledge of inventories and receivables and borrowing base-finance
• Personal guarantee

By the end of this unit participants...
... know the fundamentals of the most common collateral used for financing of working capital and capex

Unit 6: Types of Financial Covenants

• Negative pledge clause
• Pari-passu clause
• Change of control clause
• Cross default clause
• Equity ratio / Solidity
• Leverage ratio
• Interest coverage ratio
• Gearing ratioBy the end of this unit participants...

... are familiar with the main (Financial) Covenants used in SME-Finance,
... know how to interpret the different ratios,
... understand the importance of (Financial) Covenants in credit business

Unit 7: Practical example of Credit risk analysis

• Analysis of profit & loss statement
• Analysis of balance sheet
• Analysis of cash flow

By the end of this unit participants...
... have matched and compared their analytical understanding in a "real-life" credit case.

Detailed programme

After receiving your personal access data it is possible for you to work on the units as often as you want for three month

Unit 1: Introduction to SME in Germany

• Definition and segmentation of SMEs in Germany
• Overview of current economic climate and business outlook in Germany
• Success factors of German Corporate/SME-Industry ("Hidden champions")

By the end of this unit participants...
...know how SMEs are defined in Germany,
... have an overview of the economic climate in Germany and challenges ahead,
... have learned how SMEs can operate successfully in different industries

Unit 2: General Corporate Banking Products for SME

• Classical short-term- and long-term financing of working capital and capex
• Off-balance-sheet financing, hybrids and Mezzanine-Finance
• Different side-businesses (opportunities for cross selling)

By the end of this unit participants...
... are familiar with the main short- and long-term financing instruments,
... know the fundamentals of hybrids and Off balance-sheet financing,
... have elaborated on the main cross selling instruments when working with SMEs

Excurse: Overview and present issues of German banking market

• The 3 pillars in Germany are leading to fragmentation, consolidation and competition
• Market environment with negative interest rates, ECB-policy
• "Too much money and too little deals"

By the end of this unit participants...
... have gained an understanding why the German banking market is highly competitive,
... have an overview about the present issues of the German banking industry

Unit 3: General aspects of Corporate/SME-Financing

• Preconditions for credit approvals
• Benefits of financial management/-planning

By the end of this unit participants...
... can verify the priorities for Banks’ credit approvals,
... have learned the advantages which can be obtained from a comprehensive financial planning

Unit 4: Corporate/SME-Financing in a changing and challenging environment

• Regulatory requirements, deleveraging of banks’ balance sheets, need for a new bank approach, "new players on the market"
• Chances and several success factors for banks in SME business achieving house/-core bank status

By the end of this unit participants...
... have understood the ongoing "change process" on financial markets,
... can proof evidence about the potential to develop SME-business in a positive and profitable way

Unit 5: Common collateral in SME-Financing

• Mortgage on properties and different types of interestPledge of machinery / equipment
• Pledge of inventories and receivables and borrowing base-finance
• Personal guarantee

By the end of this unit participants...
... know the fundamentals of the most common collateral used for financing of working capital and capex

...