EFFECTIVE CONTROL & DEBTS RECOVERY STRATEGIES THROUGH CREDIT MANAGEMENT

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 

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 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.

Sales & Credit Relationship 

• The greatest threat to effective credit management 

Case Study 1 

• How to check the creditworthiness of a new customer? 

Q & A 

DAY 2 

Revision of Day 1 Session 

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 
• Hire right person  
• Build Customer Relationships 
• The techniques 
• Telephone Collection Skills 
• Reminder letters 
• What went wrong? 

Credit risk management 

• As the quote, ‘prevention is 90% of the cure’ – this is why go into detail upfront and get  it right the first time is important 

Explore external collection methods 

• Outsource to Debt Collection Agencies 
• Debt recovery by Legal Action 
  • To sue or not to sue? 

Case Study  

• How to reduce the risk of late payment 

Q & A