Training on Credit Control and Debt Management

About the Course

A business’s success or failure primarily depends on the demand for products or services. As a rule of thumb, higher sales lead to bigger profits, which in turn leads to higher stock prices. Sales, a clear metric for generating business success, in turn, depend on several factors. Part of a company’s efforts to boost its sales can include credit control and debt management.

Credit control involves various strategies and mechanisms, including assessing the creditworthiness of customers, setting credit limits, establishing payment terms, monitoring customer payments, and implementing collection procedures when necessary. Effective credit control helps businesses maintain healthy cash flow, reduce financial risk, and improve profitability.

Debt management strategies may include consolidating debts, negotiating with creditors for better terms or reduced payments, creating budgets to allocate funds for debt repayment, prioritizing debts based on interest rates or urgency, and seeking professional assistance if necessary. Training on Credit Control and Debt Management gives you a solid grounding in effective credit control and debt management.

Target Participants

Training on Credit Control and Debt Management is ideal for Credit Controllers, Finance experts, Financial Planners, Auditors, Debt managers, Chief Accounting Officers, and Business owners/managers.

What You Will Learn

By the end of this course the participants will be able to:

• Explain the role of credit control in maintaining financial stability and minimizing risk
• Understand the impact of effective credit control on cash flow and profitability
• Identify strategies for evaluating and managing credit risks
• Learn techniques for managing and prioritizing outstanding debts
• Develop strategies for negotiating with creditors and establishing repayment plans
• Implement Proactive Debt Collection Strategies
• Learn how to monitor and evaluate performance against established benchmarks

Course Duration

Online    7 Days

Classroom-based 5 Days

Course Outline

Introduction to Credit Control

• Definition and Types of Credit Control/management
• Quantitative and Qualitative Credit Control
• Principles of Credit Control – Liquidity, Diversity, Safety, Profitability, Stability
• Key policies: credit limits, payment terms, and quality standards

Credit Risk Evaluation

• Financial factors affecting credit decisions – Financial statements, expected loss, Loss given default, Probability of default, Exposure at default
• Analysis and projection of cash flow
• Activity and profitability ratios
• Evaluation of capacity and borrowing needs
• Credit VaR and Liquidity ratio

Credit Policy Development

• Designing an effective credit policy tailored to the organization’s needs
• Setting credit limits and terms
• Conducting credit checks and assessments

Determining Customers’ Creditworthiness

• Credit Insurance
• Trade references
• Credit application forms
• Banker’s reference
• Credit Control routines
• Debt turns and aged debt analysis
• Invoices
• Credit history

Fundamentals of Debt Management

• Introduction and definition of terms
• Types of Debt Management Plans
• Factors affecting customers’ debt repayment
• Cost of running a ledger
• Principles of Debt Management

Communication

• Essentials of communication
• Negotiation skills for debt recovery
• Telephone skills
• Managing demanding clients and controlling anger
• Written communication
• When to opt for written communication

Debt Recovery Mechanisms

• The courts and their powers of debt collection
• Statutory demands
• Insolvency and Bankruptcy
• The 3-track system
• Administration orders
• Tax relief

Debt Management Agencies

• Credit checking agencies
• Data provided by credit management agencies
• Factoring companies and the Services they render
• Specialist legal services
• Debt collection agents – ­Private debt collection agents – Sheriffs – Bailiffs
• Legal Procedures for debt recovery
• Understanding debtor’s evasion tactics

Compliance and Regulations

• Laws and regulations related to credit and debt management
• Compliance requirements for debt collection practices
• Ensuring ethical conduct in credit control and debt management

Training Approach

Training on Credit Control and Debt Management is delivered by our seasoned trainers who have vast experience as expert professionals in credit and debt management. The course is taught through a mix of practical activities, presentations, group work, and case studies.

Training notes and additional reference materials are provided to the participants.

Certification

Upon successful completion of this training on credit control and debt management, participants will be issued a certificate.

Tailor-Made Course

We can also do this as a tailor-made course to meet organization-wide needs.