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AD-6: Credit Management and Control
Credit Management and Control
In this unit students will learn to understand, apply and demonstrate the principles of credit management about granting and collection of outstanding monies in effective manner. At the end of this module students will be able to grant and control credit with customers by following good practice, reviewing customer information, considering a range of factors in accordance to organizational policies and guidance that will help management to take effective decision making.
By the end of the course, students will be able to understand:
- The impact of legislation upon credit control
- How to prepare credit control policy
- How to manage and control the supply of credit
- Use of different tools and reports to manage smooth credit management in organization
- How to prepare and provide information regarding significant outstanding amounts and potential bad debts
- Identification of a range of methods for the collection, management and recovery of debts using professional ethics and negotiation.
Legislation and Credit Control
- Main features of contract law, remedies, the terms and conditions of credit-related contracts and the importance of data protection legislation.
- Procedure for debt collection including insolvencies and involvement of courts.
- Analysis of credit control via preparation of aging and other reports for effective collection from debtors/customers.
Tools and Techniques for Credit Management
- What is the importance of liquidity management and what information is required for credit control.
- Use of different tools and techniques including ratio analysis for get information about timely payments.
- Monitoring and analysis of information relating to debtors’ accounts and prompt sending of information relating to large sums of outstanding.
Collection Process and Ethics
- Negotiation with debtors in a courteous and professional manner to get the outstanding amounts.
- Collection of outstanding amount and doubtful debts using legal procedure -courts.
- Proper use of professional ethics approaches throughout the process