Credit Management

Program Objectives:

Controllers and other financial executives with responsibility for credit, receivables, and collections need the best tools, strategies, benchmarks, and advice to set goals to improve the operations of this vital function. This program provides you with a core understanding of four basic areas critical to managing credit, AR and collections: best practices, benchmarks, automation, and outsourcing.

Program Contents

The need for credit management

• What is it ?
• Its objectives
• Its relationship with Sales

Scope of CM

• Setting Up of Customer Accounts
• Credit Application
• Terms and Limit Conditions
• Daily order approval
• Credit Administration
• Aging Report
• DSO Analysis Report

Credit Assessment

• Evaluation of credit risk of customers
• Credit Limit Review
• Creating an effective credit policy
• Credit Risk Management
• Credit Insurance

Understanding the Cost of Credit

• Multiple effect of bad debt write-off affects your profit margin
• The implication of Day Sales Outstanding (DSO)
• The Credit Perspective

Improving Cash flow using credit management

• The cash flow cycle
• Accelerating cash inflows
• Cash flow forecast

Best practices in Credit Management

Key Benefits:

By the end of this program, participants will be able to:

• Understand the meaning and reasons for Credit Management
• Appreciate the important of credit policy in defining the objectives, function and responsibilities of credit department to achieve maximum profitability from
• Realize the need of credit assessment due to selective risk-taking in the interests of increasing overall
• Focus on improvement in Company Receipts and Cash
• Establish a Collection Policy that not only ensure recovery of debts, but also provide follow up procedures in monitoring and collection of debts

Audience:

• Finance Managers
• Credit Managers
• Accountants & Admin. Executives & Managers

General Information

“Based on the training needs of the trainees”