Credit Management and Credit Collection

This course aims to equip participants with practical sessions and tools to effectively manage their accounts receivable, thereby enhancing cash flow and optimizing working capital. Credit management and credit collection are integral components of financial management within organizations, ensuring the efficient management of credit policies and the timely collection of receivables.

The “Credit Management and Credit Collection” course is designed to provide professionals with a comprehensive understanding of both credit management principles and effective credit collection techniques. Geared towards credit managers, finance professionals, collection agents, and business owners, this course offers essential knowledge and practical skills to optimize credit management processes and improve cash flow.

Credit Management, encompassing various processes, systems, methods, and actions, involves the management of credit extended to clients or customers in a business. Effective credit management tools and processes are crucial for sustaining cash flow and preventing business failure.

The credit management processes should span every stage of dealing with clients or customers, starting from assessing the risk to the business, negotiating terms and conditions, invoicing efficiently, and culminating in credit control and debt collection.

Each of these vital functions will be addressed and discussed in detail through separate fact sheets. Debt collection, defined as the process and practice of pursuing payments of debts owed by individuals or businesses, will also be explored.

Objective

• Understand different types of debtors and communicate with them effectively.
• Manage organizational credit risk and reduce the likelihood of bad debts.
• Apply credit evaluation techniques and conduct regular credit limit reviews.
• Interpret and implement credit assessment policies along with their control mechanisms.
• Achieve optimal resource utilization and improve cash conversion cycles.
• Reduce credit risk while maximizing return on investment.
• Engage in practical collection and negotiation exercises to enhance real-world skills.
• Develop a comprehensive Collection Policy that supports effective debt recovery and provides clear follow-up procedures for monitoring and collecting outstanding accounts.