SME Monitoring and restructuring

Warning signs existence is definitely means the client will be in default soon

• True

• false

Loans must be restructured even if there is no evidence that the business has a realistic chance of recovery

• True

• False

possibility of a loss resulting from a borrower's failure to repay a loan or meet contractual obligations

• Credit risk

• Market risk

• operational risk

• legal risk

once warning signs have been identified, it is necessary to take action immediately

• true

• false

You are managing portfolio of SME clients, and through  monitoring every individual facility in your portfolio, you find that the client has a  returned cheques and un authorized excess above agreed limits , in your opinion, does it consider definite sign for default and cash flow problem?

• Yes definitely

• It could be misleading

operating cycle is calculated by summation of inventory DOH and Account receivable DOH

• true

• false

Cash conversion cycle is calculated by adding operating cycle to payable DOH

• True

• false

Which of the following is represent a risk for purchasing inventory stage

• Extend payment terms for suppliers

• collection of receivable

• fire

• Too far location for distribution