Credit Control and Debt Collection Training Course

Why select this training course?

Debt collection and credit control is the most certain thing that will happen to any operational business. They form part of any business landscape. In the modern world, with a tough economy, there are increased difficulties in customers paying their debts as expected. When these customers are not paying the invoices, the skills learnt through this course by Rcademy will guarantee that you get paid. To be successful, any business needs to have cash flow, credit, and debt control and management. With a proper debt collection and credit control system, businesses can maintain customers while remaining afloat by paying their bills for products and services. Different nations have different regulations and legislation on collecting debt in their jurisdiction. Therefore, it is important to understand your local laws concerning debt collection and credit control to avoid breaking the law. Knowing the debtors’ rights in your local jurisdiction is also important to avoid using bad methods of collecting debts and controlling credit.

What is credit control?

Credit control refers to managing the flow of credit within a business, intending to reduce the risk of bad debt and improve the company’s overall financial stability. This involves implementing policies and procedures to assess and manage customers’ creditworthiness, setting credit limits, monitoring and collecting payments, and ensuring that the company’s credit policies are being followed.

What are the key steps in the credit control process?

• Customer credit evaluation
• Credit monitoring
• Payment collection
• Reporting and analysis

Credit control is essential for ensuring the financial stability of a business and is an important part of overall financial management. By implementing effective credit control practices, companies can lessen the risk of bad debt and improve their overall cash flow and financial stability.

The Credit Control and Debt Collection Training Course by Rcademy will train the participants on the best and unique methods of ensuring good and efficient communication with the debtors by establishing working debt collection policies. The participants will learn various methods used in credit risk assessments while keeping the risk-taking interest in check. It will also equip the participants to handle wrongful contact, first-party debtors, third-party debtors, and sale debtors. In addition, it will be helpful in training participants on handling wrongful debtors, such as victims of identity theft or collecting debts from deceased people.

Who should attend?

The Credit Control and Debt Collection Training Course by Rcademy is ideal for the following professionals:

• Senior executive managers in the finance industry
• Field financial officers
• Debt collectors
• Account managers
• Accounts administrators
• Head of debt collections
• Credit managers
• Credit supervisors

What are the course objectives?

The Credit Control and Debt Collection Training Course by Rcademy aims at enabling the participants to:

• Prepare materials that will be used/sent to the debtors following the legislation
• Contact debtors after thorough planning to collect debts
• Professionally handle debtors following the existing laws
• Discover various ways to handle negotiations effectively
• Demonstrate the ability to communicate effectively and clearly to the debtors
• Apply the acquired knowledge to develop debt collection strategies that work
• Understand the significance of keeping a record of all communications and negotiations with the debtors
• Identify highly effective negotiating methods and techniques for collecting debt and securing payments
• Discover ways of collecting background information that will lead to quality debt collection strategies
• Develop a system of vetting customers before granting them credit
• Increase their business earnings using good crediting habits
• Develop strategies for monitoring and controlling debt levels

How will this course be presented?

This course will be facilitated by highly experienced industry professionals who have vast teaching experience and the field. It will use the following methods:

• Notes and class lectures
• Assignments and exercises
• Presentations
• Short videos
• Case studies

What are the topics covered in this course?

Module 1: Introduction to Credit Control and Debt Collection

• Understanding business debts and credit
• Roles and responsibilities of the debt collectors
• Definition of credit control
• Definition of effective debt collection
• Using different methods to give credit

Module 2: Managing Credit in a Business

• Improving communication skills
• Stress management techniques in credit management
• Using strokes tool to collect a debt
• Image management to enhance debt collection
• Account monitoring

Module 3: Scenario Management

• Bill management
• Customer risks anticipation
• Dispute management
• Delivery problems
• Customer services

Module 4: Managing Loans

• Preferred stock
• Loan contracts
• Collateral checking
• Handling guarantees
• Credit spreads
• Fees structuring
• Unsecured loans
• Loan negotiations
• Secured loans

Module 5: Commercial Conclusion of Debts

• Legal action for debt collection
• Debt counselling
• Laws to help in unmanageable debts
• Auctioning of debtor possessions
• Handling legal issues

Module 6: Credit Control

• Effective credit management tools
• Understanding credit control
• Using software to manage credit
• Automatic reminders
• Credit appraisal techniques
• Credit policies referral point in credit management
• Monitoring and controlling credit
• Structuring credit management
• Credit assessments
• Credit history
• Financial statements
• Importance of credit control

Module 7: Risk Assessment

• Repayment capacity
• Associated collaterals
• Credit history meaning
• Developing sound policies
• Leverage ratios
• Creating projections
• Defaulting probability calculations
• Anticipated loss

Module 8: Debt Collection

• Factoring
• Key Performance Indicators for collections
• Bad techniques in debt collection
• Discounting a debt
• Interest rates and relief calculations
• Calculating turnover
• Overdue ratio calculations
• Cash cycle monitoring
• Case study

Module 9: Collection Techniques

• Personal visits by the law
• Writing official letters
• Involving third parties
• Negotiating properly
• Making telephone calls (call scripts case studies)
• Sending relevant emails
• Contacting debtors in their working areas

Module 10: Other Factors used in Credit Ratings

• Exposure rate
• Vulnerabilities
• Liquidity and assets evaluation
• Firm size and existing assets
• Government legislation and assets evaluation
• Fixed assets
• Determining ownership
• Credit rating by other debt collectors
• Handling previous debts
• Rating system
• Constructing credit scoring models
• Mapping to rating models
• Scoring statistical methods

Module 11: Public Debt Management

• Institutional frameworks
• Debt management strategies
• Transparency and accountability
• Risk management techniques
• Pitfalls in public debt management
• Coordination and objectives
• Assets and liability management
• Relevant conditioning