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.
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
- 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
- What is credit management?
- Its objectives
- Its relationship with Sales
- Define guidelines governing the operation of credit department and is divided into two parts:
- Policies and Procedures
- 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
- 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