INTRODUCTION EFFECTIVE DEBT RECOVERY AND ITS STRATEGIES
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. A better understanding of the credit assessment policy and its control mechanism, which covers credit evaluation and credit limit review, would lay down a strong foundation to manage your company’s risks to minimize bad debts.
Collecting book debts appears to be ‘so difficult’ to many people and deem uninteresting. Many people also find collecting debts an unpleasant job, not to mention frustrating and even complicating at times, even to senior staff. However, with the understanding of the credit recovery policy plus acquiring of the appropriate tools, strategies and techniques through training, collecting a debt can be professionally challenging and exciting career.
In this workshop, the facilitator hopes to share his 38 years of practical experience in credit management i.e. credit assessment and recovery, the 2 important components that would outline how to carry out the roles, functions and responsibilities appropriately to cope with the pressures, within or outside your organization, in handling professionally issues related to debt collection and ensure the company stays on course to achieving its goals.
LEARNING OBJECTIVES
- 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
- Highlight Debt Collection Agencies and legal action process in debt collection
METHODOLOGY
- Interactive Session, with a bilateral approach to the subject matter allowing participants to share incidences at respective work locations.
- Video presentation & lectures to ensure you have substantial input on the new knowledge and best practices.
- Small Group Discussions: Divide participants into small groups to tackle case studies, enabling experienced employees to share insights with newer team members.
- Q&A Sessions: Ideal for small groups, Q&A works well for skill updates or procedure changes, followed by a discussion.
WHAT YOU’LL LEARN
- The 4 objectives of Credit Management
- How credit policy defines the objectives, function and responsibilities.
- Realize the important of collection policy, which not only ensure recovery of debts, but also provide follow up procedures in monitoring and collection of debts.
WHO SHOULD ATTEND
- Credit Assistants, Executives & Managers
- Finance, Accounts & Admin. Executives & Managers
- Executives to Senior Managers
- Marketing Professionals in-charge of collection
COURSE CONTENT
Setting Expectations
- What do you expect to learn from this course?
Introduction
- Credit development and role
Credit Management
- Its purpose & objectives
- Policies and procedures
Prioritize debts recovery
- Unless we prioritize recovering debts, it will go down as a result of poor debt recovery management
- Collection Policy
- Right attitude
- Negotiation Techniques
- Mind teaser – Characteristic of a good negotiator
- Hire right person
- Build Customer Relationships
- The techniques
- Telephone Collection Skills
- Mind Teaser
- How to make your collection calls get results?
- Reminder letters
- Site visits
- What went wrong?
Credit risk management
Explore external collection methods
- Outsource to Debt Collection Agencies
- Debt recovery by Legal Action
o To sue or not to sue?
Case Study
- How to reduce the risk of late payment
Q & A
End of Session
