Training on Credit Control and Debt Management program

Course Overview

Welcome to the Credit Control and Debt Management Course!  In today’s fast-paced business environment, managing credit effectively is crucial for maintaining a healthy cash flow and ensuring business growth. This course is crafted to provide professionals with the skills to manage credit and minimize the risks associated with bad debts. By offering a practical framework for implementing robust credit control measures, assessing customer creditworthiness, and managing debt recovery efficiently, participants will gain insights into balancing credit extension with financial stability. The course emphasizes strategies for establishing effective credit policies, streamlining collections, and minimizing overdue accounts while maintaining positive customer relationships.

Target Audience

This course is tailored for:

• Credit Controllers and Credit Managers
• Debt Recovery Specialists
• Finance and Accounting Professionals
• Business Owners and Entrepreneurs
• Loan Officers and Financial Analysts
• Collections Managers
• Customer Relationship Managers
• Risk Management Professionals
• Procurement and Sales Managers
• Professionals managing accounts receivables

Course Objectives

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

• Understand the principles and importance of credit control and debt management
• Develop and implement effective credit policies
• Evaluate customer creditworthiness using financial and non-financial indicators
• Manage overdue accounts and minimize the risk of bad debts
• Apply strategies for effective communication and negotiation with debtors
• Enhance cash flow through timely collections and payment schedules
• Understand the legal framework for credit and debt recovery
• Identify and mitigate credit risks within organizations
• Manage relationships with customers while enforcing credit terms
• Use technology and tools for efficient credit control and debt management

Course Outline

Module 1: Fundamentals of Credit Control

• Importance of credit control in financial management
• Key components of a credit policy
• Assessing credit risk: tools and techniques
• Setting credit terms and limits
• Monitoring accounts receivable
• Case Study: Developing a credit policy for a small business

Module 2: Customer Creditworthiness Assessment

• Understanding credit reports and scores
• Analyzing financial statements for credit decisions
• Non-financial factors influencing creditworthiness
• Tools for evaluating credit applications
• Red flags in credit risk assessment
• Case Study: Assessing credit risk for a new client

Module 3: Debt Collection Strategies

• Designing an effective debt collection process
• Communication techniques for collections
• Negotiating payment terms and settlement plans
• Managing disputes and maintaining customer relationships
• Using technology for efficient collections
• Case Study: Resolving overdue payments in a challenging scenario

Module 4: Legal Aspects of Debt Recovery

• Overview of legal frameworks for credit and debt recovery
• Preparing documentation for legal action
• Working with debt collection agencies
• Understanding insolvency and bankruptcy procedures
• Compliance with regulatory standards
• Case Study: Legal action for debt recovery in a corporate setting

Module 5: Credit Risk Management

• Identifying and mitigating credit risks
• Portfolio management for credit accounts
• Impact of economic factors on credit risk
• Tools for monitoring credit exposure
• Risk-adjusted pricing for credit products
• Case Study: Managing credit risk during an economic downturn

Module 6: Technology in Credit Control

• Overview of credit management software and tools
• Automating credit processes for efficiency
• Leveraging analytics for credit decision-making
• Integrating credit systems with accounting platforms
• Real-time monitoring of accounts receivable
• Case Study: Implementing a credit management system in an organization

Module 7: Advanced Strategies in Debt Management

• Strategies for handling high-risk accounts
• Forecasting and managing cash flow
• Credit insurance as a risk management tool
• Outsourcing vs. in-house debt recovery
• Building resilience in credit operations
• Case Study: Long-term debt recovery strategies for a multinational corporation