Credit Control and Debt Management Course

Introduction

This program is designed for individuals who wish to gain a solid understanding of the principles and practices of managing credit and controlling debt in commercial organizations.

The course provides participants with practical tools and techniques to manage accounts receivable efficiently, improve cash flow, and optimize working capital.

Credit management involves a comprehensive approach, including systems, processes, and actions that ensure effective handling of the credit provided to clients/customers. Without these measures, businesses risk running out of cash, which can lead to failure.

Duration

5 Days

Who Should Attend?

This course is ideal for individuals in administrative, business, or finance roles who are responsible for managing credit accounts and ensuring debt is collected efficiently.

Course Objectives

Participants will learn to:

Use effective methods for communicating with debtors.
Understand the importance of a credit policy in defining the roles and objectives of the credit department.
Assess credit risks to maximize profitability.
Establish collection policies to ensure effective debt recovery and monitoring.
Collect overdue customer invoices more effectively.
Utilize tools such as the Debtors Ledger Questionnaire to identify gaps in office procedures.
Develop strategies to reduce outstanding debts and manage aged invoices.
Systematically contact customers using proven overdue invoice strategies.
Use phone scripts and questions for effective debt collection calls.

Course Content

Module 1: Introduction to Credit Management

Definition and importance of credit management.
Roles and responsibilities of the credit department.
The 6 Cs of Credit.

Module 2: Credit Risk Assessment

Financial factors influencing credit decisions.
Assessing borrowing needs and capacity.
Analyzing leverage, liquidity, profitability, and activity ratios.
Cash flow projections and the Z Score.
Advanced tools: Credit VaR.

Module 3: Non-Financial Factors Affecting Credit Decisions

Business environment and industry analysis.
Management integrity and execution capabilities.
Exercises and case studies.

Module 4: Mitigating Risk Assessment

Setting and reviewing credit limits.
Evaluating new and existing accounts.

Module 5: Loan Structuring

Credit enhancements and loan-to-value (LTV) limits.
Loan covenants and pricing strategies.
Addressing problem loans and restructuring.
Credit derivatives and case studies.

Module 6: Collection Performance and Efficiency

Aging analysis of accounts receivable.
Metrics: Turnover, Days Sales Outstanding, and Effectiveness Index.
Bad debt collection and factoring.
Overdue ratio calculations, discounts, and prepayments.

Module 7: What-If Analysis and Decision Strategies for Credit Efficiency

Scenario manager and sensitivity analysis.
Goal-seek and solver techniques.
Exercises and case studies.

General Notes

Customization: Tailored to meet participants’ needs.
Language: Participants must be proficient in English.
Comprehensive Learning: Includes guided presentations, practical exercises, and expert-led tutorials.
Certification: A certificate of completion will be provided by Stepsure Training And Research Institute.
Training Locations: Available at our centers, in-house, or online as per the client’s preference.
Flexible Duration: Course content can be adjusted to fit the required time.
Inclusions: Training materials, two coffee breaks, buffet lunch, and certificate of completion. Participants handle travel and personal expenses.
Post-Training Support: One year of free consultation and coaching after the course.
Group Discounts: Discounts from 10% to 50% for groups of two or more.