Managing Credit Accounts Receivable and Debt Recovery

Course Overview

Highly interactive, case studies based effective and proven to work techniques, this program on Managing Credit Accounts Receivable and Debt Recovery uses a very useful approach in dealing with day to day collection needs.

Collecting accounts receivable without having adequate skills of negotiation could mean leaving money on the table. On the other hand understanding negotiations and not having the required collection skills could reduce performance and recovery rates.

Learning Objectives

Bad debt, the opposite of profit, unfortunately, is a part of doing business, but not something that cannot be managed and control to a minimum thus ensure the company stays on the right track of profitability.

Manage your company’s risks to minimize bad debts
Credit evaluation and credit limit review
Understanding of the credit assessment policy and its control mechanism
Optimal resource utilization, increased cash conversion
Reduced credit risk and excellent return on investment
Practical and engaging collection and negotiation scenarios

What you will get from this course?

In this workshop, the facilitator hopes to share his 20+ years of practical experience in credit management, collection strategies, accounts receivable management, accounting and finance.

Understand the meaning and reasons for Credit Management
Appreciate the important of credit policy in defining the objectives, function and responsibilities of credit department to achieve maximum profitability from trading.
Realize the need of credit assessment due to selective risk-taking in the interests of increasing overall profitability.
Establish a Collection Policy that not only ensure recovery of debts, but also provide follow up procedures in monitoring and collection of debts

COURSE OUTLINE/ AGENDA

Introduction

The origin of credit, its role and impact on the future

The Effects of Credit

The financial effects of credit on cost, profits, liquidity, and the effect of bad debts on profits

Credit Management

What is credit management?
Its objectives
Its relationship with Sales

Credit Policy

Define guidelines governing the operation of credit department and is divided into two parts:
Policies and Procedures

Credit Assessment

Evaluation of credit risk of customers through analyzing sources of information and interpretation of financial statements
Establishing Creditworthiness
Basic information sources
In-depth information sources

Credit limits and terms

Credit Limit Review
Ad hoc and on-going review of customers

Cash Collection

Three parts to effective collection
Collection Policy
Collection Procedures
Debt Collection Agencies
Legal Action
Planning stage, Process & remedies

Specialized Credit Analysis

Industry specific credit approval terms
Specialized credit analysis for Contracting, Trading, Manufacturing and Cross border financing
Credit risk analysis and approval techniques
Early warning signals