Managing Credit & Collecting Debt Course

Introduction

Allowing customers & clients to defer payment for goods & services is a common and often necessary practice. Credit control is the totality of the policies, procedures & practices that guarantee that the total amount of credit extended and the period for which it is extended are consistent with corporate policy. A manager responsible for credit control make sure that the company grants credit systematically, recovers the cost of extending credit & consistently meets its needs for liquid funds that customer’s pay in accordance with the terms they agreed.

Remember: it’s not sold until it’s paid for! Debt collection is the generic name for the processes and procedures adopted by organizations that have extended credit to customer’s for goods and services and find that payment is either not forthcoming or is overdue.

Knowledge Development Objectives

 At the end of this program participants should be able to:

 Develop strategies to prevent bad debts

  • Control cash flow
  • Achieve improved return on capital and higher net profit
  • Capital and higher net profit
  • Recognize the reasons for a company’s ability or inability to grow
  • Identify your client’s needs
  • Engage an external debt collector
  • Evaluate the various approaches to collecting debt

Course Content

  • Assigning responsibility for credit policy
  • Re-examining your terms of sales
  • Assessing credit risks
  • Reassessing the credit worthiness of existing customers
  • Understanding the effects of bad debts
  • Reviewing your billing cycle
  • Listing overdue & total indebtedness
  • Monitoring the average length of credit
  • Introducing collection procedure
  • Remembering that prevention is better than cure
  • Identifying organizational needs
  • Concentrating on big debts
  • Writing positive letters
  • Following up letters with phone calls
  • Considering the benefits of fax and emails
  • If all else fails, considering visiting the debtors
  • Appointing a debt collection agency
  • Thinking carefully before you call in your lawyer or start legal proceedings
  • Don’t automatically return a postdated check
  • Being aware of consumer protection legislation

Who Should Attend

 Credit Controller, Finance Manager, Marketing/Sales Managers, Product /Account Manager, Debt Controllers etc.