Effective Credit Management and Debt Collection Techniques

A practical approach will be taken with 70% of the course on application and practical sessions with 30% on techniques and concepts in Effective Credit Management and Debt Collection Techniques Training.

Learning Outcomes

Bad debt, the opposite of profit, unfortunately, is a part of doing business, but not something that cannot be managed and control to a minimum thus ensure the company stays on the right track of profitability.

  • Manage your company’s risks to minimize bad debts
  • Credit evaluation and credit limit review
  • Understanding of the credit assessment policy and its control mechanism
  • Optimal resource utilization, increased cash conversion
  • Reduced credit risk and excellent return on investment
  • Practical and engaging collection and negotiation scenarios

What you will get from this course?

  • Understand the meaning and reasons for Credit Management
  • Appreciate the important of credit policy in defining the objectives, function and responsibilities of credit department to achieve maximum profitability from trading.
  • Realize the need of credit assessment due to selective risk-taking in the interests of increasing overall profitability.
  • Establish a Collection Policy that not only ensure recovery of debts, but also provide follow up procedures in monitoring and collection of debts

Course Contents


  • The origin of credit, its role and impact on the future

The Effects of Credit

  • The financial effects of credit on cost, profits, liquidity, and the effect of bad debts on profits

Credit Management

  • What is credit management?
  • Its objectives
  • Its relationship with Sales

Credit Policy

  • Define guidelines governing the operation of credit department and is divided into two parts:
  • Policies and Procedures

Credit Assessment

  • Evaluation of credit risk of customers through analyzing information & financial statements
  • Establishing Creditworthiness
  • Basic information sources
  • In-depth information sources
  • Credit limits and terms

Credit Limit Review

  • Ad hoc and on-going review of customers

Cash Collection

  • Three parts to effective collection
  • Collection Policy
  • Collection Procedures
  • Debt Collection Agencies
  • Legal Action
  • Planning stage, Process & remedies

Who Must Attend

  • Credit Assistants, Executives & Managers
  • Finance, Accounts & Admin. Executives and Managers
  • Executives to Senior Managers
  • Marketing Professionals in-charge of collection


A practical approach will be taken with 70% of the course on application and practical sessions with 30% on techniques and concepts. Training comprises a combination of:

  • Visually stimulating sessions for bite sized learning
  • Group activities and break up discussions
  • Case studies, case scenarios and role plays for application
  • Practical worksheets
  • Interactive input & presentation
  • Case Studies and Discussions, Q&A