Certified Expert in SME Finance
Frankfurt, Germany
DURATION
6 Months
LANGUAGES
English, French
PACE
Part time
APPLICATION DEADLINE
31 Mar 2025
EARLIEST START DATE
01 Mar 2025
TUITION FEES
EUR 1,550 *
STUDY FORMAT
Distance learning
* discounts are available
Introduction
Small and medium-sized enterprises (SMEs) are important engines of growth, jobs, and social cohesion. However, the creation, survival, and growth of SMEs are often hampered by access to finance. Thus, access to SME finance has become a key priority in developing and transition countries. Since the early nineties, the Frankfurt School of Finance & Management is combining advisory work, training, and policy advice with applied research. Our goal is to support financial institutions in developing and transition countries to establish good practices in Micro and SME finance.
This online course, which is based on Frankfurt School’s broad experience in practical project work and theoretical business school education programs, is tailored to the needs of mid-level managers and loan officers active or interested in SME Finance.
This course is also available in French
What Do We Offer?
- Seven units including video lectures, a PDF script laying the theoretical foundation, examples, practical exercises, online tests, and case studies.
- A discussion forum for course-related issues as well as for the exchange of opinions and experiences with peers, tutors, and the FSDF e-Campus team.
- Personalized support from your e-Campus.
- The option to obtain a Frankfurt School Certificate after passing the final exam or a confirmation of course completion after completing the course.
Workload
The course takes approx. 6 months assuming 5-7 hours of self-study per week. It consists of 7 units that build upon each other. You will take the units in sequence and will need to pass an online multiple-choice test before accessing the next unit.
Unit 3, 4, and 5 include an assignment that you will need to submit at a fixed deadline.
You are not sure if you manage to complete the course within 6 months? No worries! You can apply for a course extension (6 more months) against an administrative fee.
Ideal Students
- Mid-management of financial institutions working with SME Finance
- Operational staff within financial institutions working with SME Finance
- Top management of financial institutions wanting to enter SME Finance
- The staff of regulators, policy makers, donors and other SME Finance related institutions
- The staff of SME associations
- Consultants, students and other individuals interested in SME Finance
Admissions
Curriculum
The introduction to the course starts with positioning SME Finance compared to other client segments, e.g. corporate clients or retail clients. The learning goal of the course is to explain the main SME Finance principles, mainly focusing on credit risk analysis, the lending decision process, and appropriate risk-taking intermediation as well as customer relationship management. SME businesses face a number of specific risks in their business but SME lending is a profitable business for many MFIs and banks that use the right methodology –cash flow-based lending- and appropriate decision-making tools.
Understanding the challenges that small and medium business owners are facing is fundamental to the provision of excellent service and achieving good credit decisions.
The course follows the below listed basic logics and assumptions on SME Finance:
- SMEs require specific financial services and products according to their comparably small size and often limited scope.
- SMEs sometimes operate in informal or semi-formal environments; access to reliable (or even audited) financial data is therefore often limited.
- Since audited financial statements and sound business planning may not be available, the financial institution has to analyze the situation of the client carefully and verify verbal or internal statements.
- Once data is gathered and verified, lending decisions can be taken based on financial considerations and depending on risk appetite.
Course Objectives
On successful completion of this module, students will have a throughout comprehension of principal concepts and theories in SME finance, i.e. they will be able to:
- recall differences between SME finance compared to other client segments, e.g. corporate clients and retail clients
- explain the specifics of SMEs in a geographically limited area
- identify products and services required by SMEs in transition and developing countries
| Unit 1: Introduction to SME Finance Most SMEs work in specific environments with particular characteristics. These change from country to country, region to region, and even in between cities in the same provinces. A framework to characterize and categorize the specifics of SMEs in a geographically limited area will be explained and judged against international best practice approaches. Typical products and services required by SMEs in transition and developing countries will be presented and best practices on how to approach the segment explained. Unit structure:
| Unit 2: SME Credit Analysis - Collecting and Understanding Information “Know your client” is an important principle to understand your customer in terms of business needs as well as for sound loan decisions. Many SMEs work in informal or semi-formal environments. Often no reliable financial data is provided or sometimes not existing. Non-financial information can be cross-checked against financial information in order to get a realistic picture of the business’ economic situation. Furthermore, the importance of understanding the purpose of a loan (“investment project”) will be stressed. Unit structure:
| Unit 3: SME Credit Analysis - Verifying Information This course builds on the information provided in Unit 2. Verifying that the information provided by the business owner is correct is fundamental to achieving good risk decisions. This unit will introduce the cross-checking of financial information and develop the 8 SME risk categories in more detail. Unit structure:
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| Unit 4: SME Credit Analysis - Financial Analysis Understanding financial statements for SME businesses is an important element of good risk decisions and a low NPL profile. This course will introduce participants to understanding and interpreting key characteristics of SME financial statements. There will be a strong focus on analyzing SME financial statements to assist with sound credit risk appraisal. Unit structure:
| Unit 5: SME Credit Analysis - Cash Flow Analysis Understanding the importance of cash flow for SME business is a key skill. This unit introduces the key features of cash flow analysis and financial forecasting. There will be a strong focus on preparing and analyzing SME cash flow statements and financial forecasts to enhance financial analysis. Unit structure:
| Unit 6: Loan Portfolio Management and Monitoring Proper monitoring systems, as well as efficient loan work-out schemes, are an important element of effective SME Finance for financial institutions. Key approaches will be laid out and effective instruments (e.g. loan restructuring) will be presented. Unit structure:
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| Unit 7a: SME Finance and Supporting Activities Based on the understanding of general SME Finance management, several key topics will be reviewed and efficient as well as effective solutions presented. Unit Structure:
| Unit 7b: Alternative Forms of SME Finance: Understand the key differentiating features of different prevalent types of financial instruments that are offered by FIs, NBFIs, and non-traditional FIs for typical SME finance needs. Identify opportunities for the FI to offer adequate products to SME customers resulting in a standardized approach that saves cost and improves the risk profile of the transactions. Learn about debt, equity, and hybrid finance. Appreciate that different financial instruments will fit the needs of a business depending on its stages of development. Unit Structure:
| Unit 7c: Gender Finance/ Women in Business There is a significant opportunity to better serve the Women’s Market and a strong business case for solutions tailored for women. There are several myths about women-owned businesses that are preventing financial institutions from proactively participating in this very important market. Understand the important role of female entrepreneurship in the World’s economy. Identify opportunities for FIs to build better relationships with Women-owned small and medium businesses (WSMEs). Show how FIs can build a loyal and sustainable customer base by offer products that are better aligned to the needs of WSME customers. Dispel the myths that many financial institutions associate with Women-owned businesses. The Perils of Stereotyping. How Gender Influences the Sales Cycle. Unit Structure:
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*Subject to change
Suggestions & Recommendations
This course gives you the flexibility to decide on the timing and pace of your learning experience. However, we will provide you with recommendations for you to take as much as possible from this course.
Your schedule: We will provide you a course schedule including voluntary and mandatory deadlines. The course schedule serves as a guideline for your personal learning schedule and will help you complete the program within the given time frame.
Exercises: Even though the exercises in the script are not mandatory we strongly advise that you use them as an opportunity to check your knowledge and to prepare for the final exam.
Networking Opportunities: Use the forum to introduce yourself to your peer participants and to start interesting discussions.
Training Approach
The flexibility of our courses offers you the opportunity to follow your own schedule and to combine daily work with professional development.
The high quality offered will immediately improve your daily job performance as well as the performance of your institution.
Training Material
| Video Lectures | Online Tests | Reading Material |
| Each unit ends with an online test comprising a set of 10 - 15 multiple-choice questions. Only after having successfully completed an online test, you will gain access to the next unit. | A PDF script is for most of our courses the main studying material. This reading material provides basic concepts and principles applicable to the subject of each unit. |
| Assignments | Discussion Forum | |
| The key to successful learning is the immediate use of newly acquired knowledge and the transfer of theory into practice. Our online courses are therefore supplemented by mandatory assignments. | A course discussion forum enables the interaction between participants and trainers and facilitates the exchange of experiences as well as possibilities to ask questions or get clarifications. |
Final Exam
Passing a final examination is a requirement for obtaining your certificate.
- Location: The final exam takes place online
- Duration: The final exam takes 2 hours.
- Costs: An additional final exam fee will be charged for the second and third final exam attempt
- Certificate: Your digital certificate will be available upon passing the final examination.
If you do not wish to take the final exam, you will receive a confirmation of course participation after completing the course.
Program Tuition Fee
Program Admission Requirements
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