Training Course in Understanding the Fundamentals of Borrowing and Settlement Methods

Finance: Importance and Types

• Difference between self-financing and external financing.

• Short-term vs. long-term financing.

• Sources of funding in financial markets.

Concept of Borrowing

• Definition and motives for borrowing.

• Differences between loans and credit facilities.

• The relationship between borrowing and financial planning.

Risks of Borrowing and Financial Impact

• Interest costs and hidden charges.

• Effect of debt on financial position.

• Credit risks.

Personal and Commercial Loans

• Characteristics of each type.

• Differences in objectives and benefits.

• Documentation and collateral requirements.

Bank and Financial Institution Loans

• Traditional bank loans.

• Financing through companies and financial institutions.

• Islamic financing options (Murabaha, Ijara).

Borrowing Conditions and Eligibility Factors

• Creditworthiness and credit rating.

• Interest rates and collateral requirements.

• Repayment obligations and contract terms.

Loan Needs Analysis

• Determining the purpose of financing.

• Evaluating available alternatives.

• Assessing financing feasibility in terms of cost and return.

Financial Analysis Before Borrowing

• Evaluating cash flows.

• Assessing repayment capacity and expected surpluses.

• Impact of loans on profitability and liquidity ratios.

Risks of Financial Imbalance

• Over-borrowing.

• Reliance on unstable sources of financing.

• Weak debt management.

Scheduling and Rescheduling

• When to use it.

• Impact on total cost.

• How to negotiate with the lender.

Early Settlement and Its Implications

• Interest savings and discounts.

• Penalty clauses.

• Contract renegotiation.

Refinancing

• When it is an appropriate option.

• Difference between refinancing and rescheduling.

• Impact on credit history.

Reading and Understanding Financing Contracts

• Key clauses in contracts.

• Identifying gaps or unfair terms.

• Role of financial and legal advisors.

Negotiating Loan Terms

• Preparing a convincing credit application.

• Negotiating interest rates and repayment periods.

• Achieving mutually satisfactory settlements.

Maintaining Credit Relationships

• Importance of timely repayments.

• Avoiding classification as non-performing debt.

• Maintaining a clean credit record.

Legal Frameworks for Financing

• Laws regulating lending operations.

• Rights of borrowers and lenders.

• Breach of contract cases and penalties.

Banking and Regulatory Systems

• Role of the central bank.

• Credit instructions and controls.

• Combating fraudulent or misleading loans.

Non-Performing Loans and Legal Pursuits

• Legal procedures for debt collection.

• Rights to collateral and judicial safeguards.

• Amicable and judicial solutions.

Monitoring Financial Obligations

• Managing repayment schedules.

• Accounting control tools.

• Warnings against exceeding credit limits.

Analyzing Financial Performance Related to Loans

• Measuring return on loans.

• Changes in debt ratios.

• Reviewing previous financing decisions.

Early Intervention to Avoid Default

• Warning indicators.

• Crisis management strategies.

• Handling sudden income drops.

Building a Sustainable Financing Plan

• Diversifying funding sources.

• Self-financing from profits.

• Implementing disciplined financial policies.

Evaluating Future Financing Decisions

• Tools for financial decision-making.

• Financial and predictive analysis models.

• Aligning financing with strategic goals.

Financial Awareness and Debt Reduction Culture

• Financial literacy programs in organizations.

• Training on smart cash management.

• Promoting financial independence and reducing loan dependency.