WHAT IS THE COURSE ABOUT?
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.
WHAT TO EXPECT?
- 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
WHO SHOULD ATTEND
- Credit Assistants, Executives & Managers
- Finance, Accounts & Admin. Executives & Managers
- Executives to Senior Managers
- Marketing Professionals in-charge of collection
COURSE OUTLINE
Setting Expectations
- What do you expect to learn from this course?
Introduction
Credit Management
- Its purpose & objectives
- Policies and procedures
Important of credit assessment
- What is Credit Risk?
- Credit Assessment Policy
- Establishing Creditworthiness
- Opening New Account
- Basic Information Source
- In-dept Information Source
- Credit Visits
- Credit Limit
- Credit Term
- Credit Limit Review
- Advantages of AI-powered credit management
The C’s of business credit
- What are the C’s of business credit?
What is CRRIS report?
- The CCRIS Report lists the financing and repayment history of a borrower over the past 12 months, as reported by participating financial institutions.
Credit Scoring methods and Report
- Why is this important?
- Where to get the information?
Understanding Financial Statements
- An ability to understand the financial health of a company is one of the most vital skills – financial statements offer a window into the health of a company, which can be difficult to gauge using other means.
- An ability to understand the financial health of a company is one of the most vital skills – financial statements offer a window into the health of a company, which can be difficult to gauge using other means.
Making decisions in challenging times
- A slow economy makes doing business tougher, and unforeseen events like natural disasters can wreak havoc on even well-established companies.
Questioning and Probing Skills
- Practical steps to effective questioning and probing skills
Sales & Credit Relationship
- The greatest threat to effective credit management
Case Study 1
- How to check the creditworthiness of a new customer?
Q & A
