Course Overview

Effective working capital management is essential for maintaining organisational liquidity, operational stability, and long-term financial resilience. Inefficient management of receivables, payables, and inventory can lead to cash flow shortages, increased borrowing requirements, and higher financing costs, ultimately affecting overall business performance.

The Working Capital and Debtors Management course by Transformentors Academy equips participants with practical tools, techniques, and strategies to optimise cash flow and improve short-term financial performance. Throughout this intensive five-day programme, participants will explore key areas including cash conversion cycles, credit management policies, inventory control systems, supplier financing strategies, and debtor management practices.

The course focuses on practical applications within real financial and operational environments. By the end of the programme, participants will be equipped to strengthen liquidity management, improve working capital efficiency, support effective cash flow planning, and contribute to sustainable business growth and financial stability.

Agenda

Day — 1 Understanding Working Capital and Its Strategic Importance

• Defining working capital and understanding its importance in maintaining business liquidity and operational continuity
• Discussing the relationship between profitability, liquidity, and financial risk in working capital management
• Exploring the main components of working capital and their interrelationships, including:
  • Current Assets
  • Current Liabilities
• Examining the operational and financial impact of poor working capital management practices
• Understanding the objectives, principles, and strategic importance of effective working capital management
• Identifying organisational policies, controls, and responsibilities involved in managing working capital efficiently
• Practical exercise: Assessing the adequacy and effectiveness of a company’s working capital position

Day — 2 Working Capital Cycle and Cash Conversion Cycle

• Explaining the structure, purpose, and operational flow of the working capital cycle
• Discussing the key stages of the cash conversion cycle, including:
  • Inventory Turnover
  • Receivables Collection
  • Payables Deferral
• Understanding the main components used to measure the cash conversion cycle, including:
  • Days Sales Outstanding (DSO)
  • Days Inventory Outstanding (DIO)
  • Days Payable Outstanding (DPO)
• Examining inventory management and stock control techniques, including:
  • Economic Order Quantity (EOQ)
  • Just-In-Time (JIT) Management
• Discussing process improvement approaches and operational strategies used to shorten and optimise the working capital cycle
• Case study discussion: Comparing the working capital cycles of two companies and evaluating their operational efficiency and liquidity management

Day — 3 Managing Debtors and Collections

• Defining debtor management and understanding its role in effective working capital management
• Discussing credit policies, terms of trade, and collection procedures used in managing accounts receivable
• Examining the financial costs, operational risks, and cash flow implications associated with offering customer credit
• Exploring effective credit control practices and communication strategies for managing debtor relationships
• Identifying Key Performance Indicators (KPIs) used to monitor debtor performance and collection efficiency
• Applying techniques for improving collections processes and handling overdue or delinquent accounts
• Practical exercise: Developing a sample credit policy and designing performance metrics to monitor debtor management efficiency

Day — 4 Financing and Optimising Working Capital

• Discussing the main methods used to finance working capital, including:
  • Internal Sources of Funds
  • External Sources of Funds
• Exploring different working capital financing options, including:
  • Supplier Financing
  • Trade Credit
  • Receivable Factoring
  • Invoice Discounting
  • Alternative Receivables Funding Solutions
• Examining the opportunity cost of capital and understanding its impact on working capital investment and financing decisions
• Discussing cash flow optimisation tools and techniques, including:
  • Treasury Procedures
  • Payment Systems
  • Technology-Based Financial Solutions
• Understanding end-to-end cash flow management strategies used to improve liquidity and operational efficiency
• Case study discussion: Assessing the financial impact of different working capital financing strategies on organisational performance

Day — 5 Strategic Approaches to Working Capital and Debtors Management

• Analysing the strategic implications and financial impact of alternative credit policies on business performance and liquidity
• Discussing the relationship between working capital investment levels and overall corporate performance
• Exploring outsourcing options for debt management and evaluating their benefits, limitations, and operational considerations
• Discussing working capital analytics, forecasting models, and performance dashboards used for management reporting and decision-making
• Applying best practices for integrating working capital management with broader corporate financial planning and strategy
• Course review, lessons learned, participant feedback, and programme evaluation

Learning Outcomes

By attending the Working Capital and Debtors Management training course, participants will be able to:

• Understand the concept, components, and strategic importance of working capital in maintaining business liquidity and short-term financial health
• Analyse the working capital cycle and cash conversion process while identifying the main factors affecting efficiency, cash flow, and profitability
• Evaluate debtor management and credit control systems, including the development of effective credit policies and accounts receivable management practices
• Apply techniques for optimising inventory, receivables, and payables using quantitative tools such as Economic Order Quantity (EOQ) and working capital performance ratios
• Assess different working capital financing alternatives, including trade credit, supplier financing, factoring, and other short-term funding solutions
• Measure and monitor working capital performance using Key Performance Indicators (KPIs), financial reporting, and management control techniques
• Incorporate opportunity cost considerations and risk-return trade-offs when making strategic decisions related to working capital investment and credit management policies

Who Should Attend

The Working Capital and Debtors Management course is designed for professionals responsible for managing cash flow, liquidity, and short-term financial operations, including:

• Finance and Treasury Managers
• Credit Control and Collections Officers
• Accounts Receivable and Accounts Payable Staff
• Financial Controllers
• Business and Operations Managers
• Professionals responsible for managing liquidity, working capital, and cash conversion cycles