Cash Flow Cycles Seminar

Cash Flow 3.0—Advances in Cash Flow Lending based on Sustainable Cycles 

The seminar based on the book was launched at Mega Bank, Jakarta, in 2014.  Mega Bank was the perfect venue see blog.  Post-seminar reviews were sterling, with an overall instructor rating of 4.2 out of 5.

Objectives:  There are two main objectives of the book and the seminar:

Better Credit: Cash Flow 3.0 sharpens the measurement of debt repayment by pinpointing the cash flow that should repay a loan within its natural cycle (new primary coverage ratios). In contrast, traditional ratios like the long-term Debt Service Coverage Ratio (DSCR) and Current Ratio are less precise because they include cash that flows from other cycles. Analyzing how cash can flow between cycles reveals cross-cycle repayment--how AT&T pays its creditors despite a multi-billion dollar negative working capital--and cross-cycle financing which answers persistent questions like “Can a term loan be made to finance a permanent increase in working capital?”

But the ultimate objective of cash flow analysis is to use the analysis to craft a
strategy for financing sustainable growth—the mutual objective of both lender and borrower. Which brings us to sales:

Better Sales: Viewing cash flow in terms of recurring cycles is so logical, so intuitive, that even junior lenders with limited accounting skills can discuss with SME clients (and sell) a “strategy for financing growth” tailored to the SME’s particular needs.  Empowered to explain the what and why of the strategy, relationship officers become valued financial advisors, which is the “value added” that SMEs look for in selecting their bankers.

Audience:  Cash Flow 3.0 presents a new framework with surprising revelations that are provocative for even the most senior bankers, accountants, and professors. Yet the principles are fairly easy to follow and are presented such that junior lenders will be empowered with new tools and techniques that they can use immediately.

Handout: All participants receive a copy of the book (far more useful than power-point printouts!)

Duration:  A seminar similar to that launched at Mega Bank, Jakarta, spans approximately three-days but can be condensed or expanded depending on course objectives.  Course content is tailored to participants. 

© Bartoletti  March 2012, updated Nov 2014