Credit management, or the managing of cash flow, is at the core of any business. The nature of providing goods or provides services ‘on credit’ – a normal and conventional practise in the modern world – means a business exposed to the very real risk that customers or clients might ‘default’, or refuse to pay their bills or debts. The accumulation of ‘bad debt’ can seriously affect the operations and profitability of any business. It is the important task of the credit manager and/or accounts managers and personnel, or the owner or manager of a small business, or an appointed official or executive of larger businesses – to formulate a ‘credit policy’ to control and manage the credit extended to its customers or clients. Through credit management training, students can gain an understanding of the process, with adequate checks made on “credit-worthiness” of new and existing customers, and setting ‘credit limits’ (how much credit is allowed and for how long.) This training course covers all those topics, and many more, which are of value to any business.
What are Credit Management Courses?
A credit management course is ideal for anyone who is involved in accounts or accounts collection. The course teaches the particular skills needed to adopt a credit management policy that achieves results without damaging existing relationships or losing customers. The course will show how to utilise modern cash collection techniques and generate ideas for improving cash collection procedures. This programme will also highlight the need for good organisation skills and follow-up procedures and shows how this can be delivered.
Course Content Includes:
- What’s at the core of credit management: the nature of credit, credit policy, credit terms, credit limits and accounts receivable
- What are the major firms of credit and how do they operate
- What are the risks in providing credit facilities
- The importance of cash flow, the management of liquidity; methods of improving cash flow
- Responsibilities of the credit management function.
- Internal and external sources of information about customers or clients and GDPR concerns
- Using performance indicators for customers, using a credit scoring system and the shortcomings of credit scoring systems
- Granting credit and setting up customer accounts; what are the criteria?
- Procedures for opening a new credit account and reasons for refusing credit
- Changes in credit terms, discounting and reasons for discounting and reasons for writing off debts
- Legal methods of “chasing” and recovering outstanding debts
- Monitoring and controlling customer accounts and aged debtor reports
- Using third parties for debt collection what the legal process is.
What the Course Teaches
Participants will learn how to monitor assets, put together a successful debt collection programme and the importance of planning & preparation before contacting the customer. They will also learn the importance of building positive attitudes and confidence necessary for successful credit collection and good credit management. Developing the necessary skills of persuasion and methods for dealing with cash collection targets and dealing with excuses for non-payment of debt is also covered. Students will learn the importance of keeping records and how to conduct follow-up calls for non-responders.
Why it Delivers
A credit management training course will provide the theoretical and practical background and techniques that form the basis of the organisation and management of credit management, accounts payable and its related functions in the workplace. These courses provide a real world practical context by incorporating worked examples and case studies that students will see how theory applies in practice and can discuss the various issues raised. Participants will acquire and develop essential skills that will improve their technical competence in all aspects of credit management management, while at the same time defining the essential processes that need to be in place in their organisation to ensure that risk and exposure to bad debt is minimised, while retaining good customer relations. A good credit management policy delivers in terms of supporting a company’s sales and marketing story with a robust process which safeguards their cash flow and their customer relations.
