Raising awareness of working capital issues
As a trainer, Scarlett Favre-Verand has observed that many finance students are naturally drawn to the "upper part" of the balance sheet (investments, financing, etc.), often considered the “noble” side of finance. However, Scarlett introduces them to working capital management (WCR), a fundamental pillar of a company's financial health. She starts by explaining cash flow concepts and asset turnover, directly linking them to value creation.
I talk to them about cash as a creator of value, in the same way an investor would talk about an asset’s return. The ability to transform margin into cash flow is what makes the real difference in a company.
explains Scarlett.
By demonstrating the importance of managing accounts receivable and payment terms, she draws their attention to the direct contribution of cash flow to a company's success. She also shows them that mastering WCR is crucial for understanding a company's true profitability—an aspect often underestimated.
Interactive and practical courses
To deliver these concepts in an engaging way, Scarlett structures her courses with a 50/50 balance between theory and practice. She emphasizes the importance of having students work on real-world cases, helping them acquire practical skills and prepare for real-life business situations.
Students learn better through practice. Half of the course is dedicated to case studies, where they work in groups to solve credit management situations.
she notes.
During these practical sessions, Scarlett introduces students to typical scenarios faced in Credit Management: reducing DSO (Days Sales Outstanding), handling disputes, and assessing customer risk. Through these exercises, students learn to highlight the potential gains for a company and to estimate the ROI of cash flow optimization initiatives.
Guest speakers and a variety of perspectives
In addition to her own lessons, Scarlett invites industry professionals to share their experiences. Among the guest speakers, she collaborates with credit insurance players, risk decision specialists from Coface, and factoring experts. These interventions allow students to gain a broad perspective on Credit Management tools and techniques.
They hear directly from professionals who explain risk decision-making processes, or how factoring allows companies to finance receivables without increasing debt.
Scarlett explains.
These meetings enrich the training and provide students with a better understanding of the available tools for managing receivables and optimizing cash flow. The diversity of speakers also gives them a clear view of current market solutions.
The audit and final challenge: A real-world case study
At the end of each training cycle, Scarlett organizes a final challenge: a client receivables audit where students must apply all the concepts studied during the course. In small groups, they conduct a diagnosis, propose an action plan, and present their recommendations by highlighting the estimated ROI of their solutions.
On the final day, I have them carry out a complete audit of the client receivables portfolio, with an action plan and an estimation of potential gains. It’s excellent preparation for the situations they will encounter in their careers.
she says.
This final case study allows students to simulate a real-life context where they must make credit decisions, analyze payment behaviors, and present a structured action plan to their peers. According to Scarlett, this exercise enhances analytical skills and fosters a sense of responsibility when dealing with a company's cash flow issues.
Conclusion: Training the future leaders of Credit Management
For Scarlett, training finance students in Credit Management is a vital mission. She aims to raise the next generation’s awareness of cash flow and customer risk management challenges and equip them with the tools needed to become change-makers within their future companies. By teaching them to understand WCR and to emphasize cash gains, she prepares them to contribute actively to the financial strength of the organizations they will join.
Stay tuned! In the next episode, Scarlett will share her expertise in team management and explain how to motivate employees during challenging Credit Management projects.