Categories: Governance Risk & Compliance CoursesLearning

EFFECTIVE CREDIT MANAGEMENT & DEBT RECOVERY STRATEGIES

OVERVIEW

Bad debt and working capital are serious concerns for any company and business today. It has been known that cash flow problems have lead 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. At this intensive course, you will learn to understand and appreciate the importance of credit control and debt collection, how to plan an effective debt collection program and to acquire and apply effectively proven techniques for debt collection (written and through telephone).

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. The programme will utilize extensive case studies to develop the understanding of delegates in a practical and engaging way across a range of scenarios. Each participant will receive a workbook containing the presentational slides and supporting material for referral to improve their efficient in credit administration and credit risk management.

COURSE OBJECTIVE

By attending this training course the delegates will be able to:

Identify credit and other associated risks in commercial trade transactions
Appreciate the key aspects of the commercial contract and determine what Incoterms® rules to apply from a risk and financing perspective
Formulate and implement credit risk policy and debt collection procedures
Determine the appropriate method and terms of payment
Achieve risk mitigation through credit insurance, letters of credit, bank aval or guarantee
Appreciate the terms and conditions of credit insurance cover
Manage and monitor trade transactions and operate a sales ledger effectively
Retain control over the goods until payment can be secured
Use the trade cycle timeline to determine the transactional risk profile, amount, duration and type of financing required
Select and structure the optimum trade receivable finance solution
Identify and minimize the cost of bad debts and avoidance of bad debts
Make good and effective decisions on cash management and collections

TARGET AUDIENCE

Bank credit risk officers, Staff within credit and risk management functions, Bank corporate relationship managers, Senior finance personnel, Trade and export finance executives, Middle office trade operations personnel, Lawyers and staff involved in the legal aspects of international trade, Credit insurers

COURSE CONTENT