Effective Credit Control & Debt Collection Management

This highly interactive and intensive 2-day program focuses on effective credit control and management of debt collection skills. While credit is an essential means of running a business in today’s competitive environment for increased revenue and profit, it is important to establish a strong collaborative relationship between buyers and vendors as they are both each other’s key business partners.

Managing a debtor’s accounts and the collection of receivables is critical in optimizing the profit and cash benefits of increased revenues. Effective credit management will not only create value by improving cash flow, but also help enhance customer relationships in the long run.

By the end of the program, you will be able to:

• Understand the financial effects of credit management and how it impacts the total cash management of the company.

• Appreciate the key benefits in revenue management for the overall growth performance of the company.

• Understand the need of a credit policy to strengthen the evaluation of credit risk.

• Identify and implement effective credit control to detect problem accounts early.

• Effectively strategize for debt collection.

Accounts Receivable (AR) department managers, AR personnel, AR and revenue accountants, billing and collection clerks, Credit Control Managers, AR & Credit Control specialists and professionals in accounting and finance who interact with Accounts Receivable.

Day 1

Module 1: The Financial Effects of Extending Trade Credit

• The cost of credit.
• Effects of credit on profits.
• Effects of credit on liquidity.
• The financing of credit.
• Measurement of debtors.
• Problems faced by extending trade credit.
• The importance of trade credit.

Module 2: Safeguard your assets trade receivables

• Establishing a profitable relationship.
• Meeting the needs of the customers.

Module 3: Embed and Manage Risk Policy Across the Enterprise

• Benefits of having a clear credit policy.
• Elements of a credit policy.
• Defining the credit risk policy.
• Reporting structure and organization.

Module 4: Leverage Credit Data for Risk-Based Collections

• Know your customer.
• Do they need the credit – evaluate the customer’s request using the 6C’s.
• Data sources – getting the information you want.
• Analyzing the data available.
• Making the credit decision – giving credit limit and categorizing credit customers.
• Dealing with high-risk accounts – getting comfort.

Module 5: Segregate Disputes from the Collection Process

• Monitoring trade disputes – improving the order-to-cash cycle.
• Detecting problem accounts early.
• Collection options.

Day 2

Module 6: Strategic Approach to Collection

• Know the different debtor profiles.
• Learn the different profile of debtors and tell-tale signs.
• Develop objectives to the collection process.
• Collection strategies.
• Call planning.
• Steps of a collection contact.
• Principles of good telephone techniques.
• The importance of attitude.
• The importance of speed.
• Managing the collection process.
• Prioritizing techniques.
• Escalation procedures.
• Customer visits / meetings, preparation, etc.

Module 7: Manage Bad Debt Reserve

• Options available – collection agency / professional collector or legal.
• What to consider – cost vs corporate image.
• Pre-action steps.
• Legal action procedures.
• What if you customer’s business is insolvent? Steps to take and what to look out for.

Module 8: Supervising People in Credit & Debt Collection

• Set performance measurements and standards.
• Know the different attributes that make up for an effective bill collector.
• Improving productivity & 10 AR best practices.

Interactive Lectures, Accelerated Learning, Business Driven Action Learning, Case Studies and Discussions, Practical Exercises, Peer & Trainer Evaluation.

Mr. SUHAINI.

Chartered Accountant of the Malaysian Institute of Accountants

MBA from Asia E University Malaysia

Bachelor Degree in Accounting, University Technology MARA

SK has more than 20 years professional experience as a commercial practitioner in dynamic public and private organizations specialized in the areas of corporate finance, treasury, and strategic planning.

He has held several key senior management level positions including Chief Financial Officer of a subsidiary company and an affiliate company of Telekom Malaysia Berhad after which he became a PSMB certified and professional trainer since 2019.

He is a Chartered Accountant of the Malaysian Institute of Accountants and a HRDC certified trainer since 1999 and 2019 respectively.

He attained an MBA from Asia e University Malaysia and a Bachelor’s Degree in Accounting from University of Teknologi MARA Malaysia.

Or, in the event of substitution, we have a faculty of equally talented specialists who can cater to your organizations's specific needs.

For training and advisory services, feel free to contact us at info@itrainingexpert.com or call us at +603 8082 3707 | +603 8074 9056 | +6012 6869 628 | +6018 2175 123