Debt Collection And Credit Control (EDM)

As business gets competitive, suppliers of goods and services are often forced to compete on more relaxed credit terms. This raises the risk of bad debts and a potential cash flow crisis. 

Management, therefore, needs to be on guard for bad customers, constantly improve debtor quality and maintain regular cash flow from credit customers. 

Trade receivables collection is the key to good business cash flow. Effective receivable management reduces the risk of bad debts and minimizes cash flow interruption and costs of doing business.

Objective:

• The course is designed to develop the skills and knowledge of business managers in managing credit portfolios and ascertaining acceptable credit risk, by introducing basic analytical techniques and tools and essential credit risk analysis methodology. Participants will also acquired knowledge in effective debt management in perfecting credit risk management.

Upon Completion:

• Understand credit risk and risk management and the tools for managing credit risk
• Understand the collection process and its prerequisites for a successful business
• Select the appropriate collection strategies to improve cash flow and minimize bad debt losses
• Develop and formulate a credit and collection policy framework for their organizations

Course Outline:

• Effectiveness In Collection    
• Why Collection Efforts Fail
• Common Approach vs Creative Collection
• Strategy for Effective Collection
• Implementing Effective Debt Collection
• Credit culture and practice
• Understanding Debtor’s Behavior    
• How does debtor behave when you call
• How to tackle difficult situations
• Why does debtor refuse to pay/ delay payments
• Communicating with your Debtor    
• Collection Call
• How to make an effective Collection Call
• Process of Collection Call
• The Cycle of Collection Call
• Role Play: How to handle difficult Collection Calls
• Negotiating with Debtor    
• The Objective
• The Process
• Good Negotiations Strategy
• Common Debtor Tactics
• Group Exercise: Solutions on how to resolve different scenarios