Credit Management & Control

Module 1 - Introduction to credit management

·Commercial and consumer credit

·The major forms of credit.

·The benefits to manufacturers/producers, vendors and consumers of credit availability.

·Risks in allowing credit to customers.

Module 2 - Introduction to credit control

·The meaning of liquidity; liquidity management

·External methods of improving liquidity

·Sources of information about customers

·Data Protection laws

Module 3 - The credit control function

·The credit control process

·Credit control activities

·Credit control policy and procedures

·Application forms for credit

Module 4 - Financial analysis of customer accounts

·Analysing customer accounts: liquidity, profitability, gearing

·Profitability and performance indicators

·Working capital cycles

·Financial position measures

Module 5 - Credit scoring systems

·Credit risk level

·Credit scoring and calculating scores

·Shortcomings of credit scoring

·Summary of equation and ratio measures

Module 6 - Granting credit

·Factors affecting the decision

·Refusing credit

·Changes in credit terms

·Half-way house credit

Module 7 - Setting up customer accounts

·Policies and procedures letter and contents

·Credit period, limits, terms and discounts

·Penalties for late payments

·Credit insurance for sales

Module 8 - Running customer accounts

·Customers and contracts

·Elements of contracts

·Terms of commercial contracts

·Breaches of contract

Module 9 - Legal considerations

·Selling and statute law

·Trade descriptions laws

·Sales of Goods laws

·Consumer credit laws

Module 10 - Monitoring customer accounts

·Trading history review, average periods credit reviews, materiality

·Receivables (aged debtor) reports; interpretation, analysis and use

·Communications regarding chasing debts

·Doubtful and bad debts, provisions for doubtful debts

Module 11 - Methods of collecting trade debt

·Credit insurance

·Factoring and invoice discounting

·Third parties for collecting debts

·Checking contract of sale agreements and breaches of contract

Module 12 - Taking a customer to court

·The court system and claims

·Legal terms and enforcement of judgements

·Customers and insolvency, writing off

·Administrators and administrative receivers