What Is Cash Flow Lending? Session Guide MABS Technical Resource Specialist Training-Workshop

Session 4:What is Cash Flow Lending? Objective:At the end of the session, the participants will able to discuss the importance of cash flow lending, and how cash flow is different from other approaches to lending. Duration:30 minutes Methodology:Lecture-Discussion Training Material:Power point presentation Training Handout: Equipment: 3-slide in a page Power point presentation Digital projector, Chairs and tables

Session Guide A. Introduction 1.Show slide 2. Tell the participants that this session will discuss the difference of cashflow lending to other approaches to lending as well as the importance of cashflow lending. Then move to the slide that shows the session’s objectives. 2.Introduce the 3rd slide that shows the three basic types of lending i.e. asset based lending, project based lending and cashflow lending. Please refer to the brief speaker notes for this slide. B. Main Presentation 1.Show and discuss the succeeding powerpoint presentation. Use the appropriate speaker’s notes to elaborate on the items in the presentations. 2.During the presentation, encourage participation by asking questions and encouraging participants to share related experiences. Alternatively, ask each participant read a bullet in the slide and to share his/her own view on the item being discussed. (If necessary, write important information given by the participants on the white board.)

3. Note that the main presentation covers the topics on the nature, advantages and disadvantages of the three types of lending. Make sure that you have clearly differentiated these types of lending in your presentation. C. Closing 1. After discussing the 10 th slide (disadvantages of cashflow lending), casually ask the participants, "So, why is MABS using cashflow as the basis for lending to microenterprise clients of rural banks?". Pause briefly and look at the participants. Then show and read the 12 th slide (Why is Cashflow Analysis Important in Microenterprise Lending?) 2. End the presentation by showing slide 13.