Cash Flow Based Lending in SME Finance Training – Lusaka, November 2018

The mind-set of financial institutions is shifting from current focus on collateral/ asset based financing to a cash flow based lending approach. It still is a challenge in Zambia to change the Financial Institutions policies/ strategy and mentality of thinking collateral pays back loans. Hence it is from critical to educate staff and senior management on how cash flow is a successful tool to lend to M/SMEs to improve the status quo.  

To serve the need of the Zambian market we have offered three consecutive trainings in Cash Flow Based Lending in SME Finance between November 12th and 21th in the frame of the BANKING AND FINANCE ACADEMY in cooperation with ZIBFS. 

A total of 58 participants from four Zambian institutions (AB Bank, EFC, MFinance and Zambia Development Agency) learned how to use cash flow based lending as a tool of SME finance and find a way to mitigate the high risk for lending in this segment. The training aimed at providing basic knowledge and skills necessary to successfully implement cash flow-based lending in their own institution while also focusing on risks and challenges along the whole loan cycle.