This course covers Permissible Usage Definition, which involves defining the allowable use-cases, boundaries, and conditions under which working capital facilities may be utilised by consumer borrowers, within Working Capital – Consumer Credit. It applies to accounts requiring structured assessment, clear boundary definition, and independent review before any credit action is finalized.
It evaluates key dimensions such as appropriateness of product structure choices, clarity of usage boundaries, effectiveness of utilisation monitoring mechanisms, and alignment with liquidity risk management principles, with each requiring independent validation and documented rationale to ensure that funds are used only for approved working capital purposes and that misuse, overextension, or unintended exposures are appropriately controlled.
It is distinct from related credit management processes, as it focuses on structured identification, governance, and monitoring of permissible fund utilisation at the exposure and product level, rather than broader operational or portfolio management activities—each governed by separate evidence standards, ownership, and approval authority.
Within Working Capital Product Proposition & Structure, the senior credit leader sets portfolio limits, governs exception criteria, and drives strategic alignment across the Working Capital – Consumer Credit function, directly influencing escalation scope and credit committee prioritization.