This course introduces the concept of Permissible Usage Definition within the Working Capital – Consumer Credit framework. It focuses on defining the allowable use-cases for working capital facilities and establishing clear boundaries around how approved credit can be utilised.
Learners will explore key assessment dimensions such as evaluating appropriate structure choices for working capital products, defining usage boundaries aligned with business purpose, implementing utilisation monitoring mechanisms, and integrating liquidity risk management considerations, with an emphasis on independent validation and well-documented rationale. The course highlights how clearly defined permissible usage parameters help prevent misuse of funds, reduce unintended exposure risks, and ensure that facilities are aligned with genuine short-term working capital needs. It also examines the importance of monitoring utilisation patterns to identify deviations from approved usage behaviour.
The course distinguishes permissible usage definition from broader credit management processes, emphasizing its role in exposure-level usage control, risk identification, and structured breach response, whereas broader processes govern overall strategy, governance, and portfolio oversight. Each requires distinct evidence standards, ownership, and approval authority.
By the end of the course, participants will understand how to define, assess, and monitor permissible usage frameworks in practice, particularly within Working Capital Product Proposition and Structure. The course also emphasizes the role of the credit manager in validating team-level analysis, approving case recommendations, and managing segment-level exposure within Working Capital – Consumer Credit, ensuring disciplined utilisation, effective escalation, and alignment with credit committee priorities.