A-Z of Credit Control

Overview

Course duration: 2 days.

Ideal for new or inexperienced credit controllers, an intensive course that gives you a broad introduction to the area ofcredit control.

This comprehensive and practical two-day course covers all aspects of the credit controller's job. It will enable delegates to get the complete picture so that they not only improve their knowledge, but will also learn to see the linkages between all aspects of their work. This will help them to understand priorities better and to allocate their time better between tasks, so that they become more effective in collecting cash.

Is it right for me?

Suitable for all credit controllers who want to improve their knowledge of all aspects of credit and collections. It is suitable for those who are new to their role and more experienced credit controllers who have had little formal training.

What will I learn?

By the end of this course you will be able to:

• Understand the importance of good credit management.
• Recognise your contribution to increasing company profitability and minimising risk.
• Understand the legal framework and why it matters to your job.
• Carry out all of the elements of the collections cycle.
• Choose the best approach to get cash in using a combination of methods.
• Use the telephone to greater effect.
• Decide when and how to 'get tough' with customers, including going legal.
• Tackle your ledger and your customers with greater confidence.
• Increase the cash you collect from customers.

What will it cover?

The Purpose of Credit Control in the Organisation

• What is credit and why do we need to give it?
• Maximising profitable sales
• Improving cash flow and liquidity
• Protecting against bad debts
• Better customer relations
• Encouraging teamwork with the sales force
• The company's credit policy

Terms and Conditions of Trade

• Fundamental elements of a contract
• Payment terms
• Which terms apply?
• Interest on overdue accounts
• Retention of title

Customer Identity

• Understand different corporate entities
• Trading with partnerships and sole traders
• Trading names and name changes
• Recognise the importance to credit control

Credit Assessment and New Accounts

• Application forms - getting the right information
• Assessing customers' credit worthiness
• Sources of information to assess credit risk
• Assessing ability to pay and on-going monitoring of customers

A Review of the Legal System

• Overview of the legal options to collect debts
• Implications of going legal

Measuring Performance

• Calculating day's sales outstanding
• Forecasting cash flow
• Target setting and monitoring performance

The Monthly Campaign

• The concept of a monthly campaign
• Collection methods available
• Collection strategies - letters, email, fax, telephone
• Deciding priorities

The Letter Cycle

• What makes a good letter?
• How many to send?
• How effective are they?

Good Telephone Techniques

• Attitudes and behaviour - the psychology of cash collection
• Get your records straight
• Telephone calls
  • three call types
  • stages in a telephone call
  • asking for payment and negotiating agreement
  • getting a commitment
  • following up the call

Collecting Tough Debts

• Why haven't they paid? Can they pay?
• Understanding the reasons for non-payment
• Tackling excuses
• Providing solutions to get debt cleared
• Payment plans
• Alternatives to legal action

Query Management

• Whose responsibility is it to solve queries?
• Best practice procedures
• Analysis of errors and credits

Trainer Profile

Ian Sanders

I bring many years' experience of working in Credit Management with leading financial institutions. I work with participants to share tips, techniques and best practice to provide them with a comprehensive picture of the role of the complete credit function within any organisation.

I challenge participants in a thought-provoking environment with the aim of maximising their effectiveness in increasing cash flow within their organisations.

The Faculty

Along withTracey Grice and Lindsey Byrne, Ian Sanders is part of the dedicated faculty team who will deliver this course. The initials next to each date below indicate which trainer is scheduled to deliver which event.