Bad debt and working capital are serious concerns for any company and business today. It has been known that cash-flow problems have led to the ruin, failure and bankruptcy of otherwise successful concerns in the banking industry.
Therefore, it is very essential to ensure that your credit control management and debt collection activities result in TIMELY payment of the outstanding debts from your customers, without damaging your good customer relations with your clients.
The course will explore the nature, requirement and implications of trade credit from a risk and cash flow perspective and the range of receivables finance solutions that can be used to mitigate both credit and liquidity risk. The key structures and risks associated with receivables finance will be covered in order that the delegates can select and structure the optimum financing solution.
KEY LEARNING OBJECTIVES
At the end of this training, participants will be able to:
- Identify credit and other associated risks.
- Implement credit risk policy and debt collection procedures.
- Determine the appropriate method and terms of payment.
- Appreciate the terms and conditions of credit insurance cover.
- Manage and monitor trade transactions and operate a sales ledger effectively.
- Identify and minimize the cost of bad debts and avoidance of bad debts.
- Make good and effective decisions on cash management and collections.
- Credit Risk Officers
- Staff within Credit and Risk Management staff
- Bank Relationship Managers
- Recovery Officers/Managers
1) Credit Management: an overview
- The Role of Credit and its importance in the economy
- The Development of Consumer Credit
- The Finance Effects of Credit Management
- Credit Policy, Terms and Conditions
2) Assessing Credit Risk
- Precondition for effective credit management
- Prediction of Corporate insolvency
- Insolvency Warning Signs
- Delinquency Management
- Credit Management Strategies
- Loan Recovery Techniques
3) Cash Collection
- Computer System in Credit Management
- Debt Collection Strategies and Process
- Planning, Measuring and Reporting Debtors
- Circularization of debtors