Credit Management Course
What is Credit Management?
Credit management is the process of managing a company’s credit policies and procedures, as well as the credit extended to customers. This course provides an overview of the key principles of credit management, Participants will learn how to establish and maintain effective credit policies, By the end of the course, participants will be equipped with the knowledge and skills needed to effectively manage credit and improve the financial performance of their organization.
Why Credit Management?
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.
1- The need for credit management:
- What is it ?
- Its objectives
- Its relationship with Sales
2- Scope of CM:
- Setting Up of Customer Accounts
- Credit Application
- Terms and Limit Conditions
- Daily order approval
- Credit Administration
- Aging Report
- DSO Analysis Report
3- Credit Assessment:
- Evaluation of credit risk of customers
- Credit Limit Review
- Creating an effective
- credit policy
- Credit Risk Management
- Credit Insurance
4- 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
5- Improving Cash flow using credit management:
- The cash flow cycle
- Accelerating cash inflows
- Cash flow forecast
6- Best practices in Credit Management.
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
- Finance Managers
- Credit Managers
- Accountants & Admin.
- Executives & Managers
- Lectures 0
- Quizzes 0
- Duration 36 hours
- Language ENG/AR
- Students 0
- Assessments Yes