Effective debt Collection for better Ca$h management
Code
:
EDM
Objective
:
The course is designed to develop the skills and knowledge
of business managers in managing credit portfolios and
ascertaining acceptable credit risk, by introducing basic
analytical techniques and tools and essential
credit risk analysis methodology. Participants will also
acquired knowledge in effective debt management in
perfecting credit risk management.
Upon completion
:
You will be able to
Understand credit risk and risk management and the tools
for managing credit risk
Understand the collection process and its prerequisites for
a successful business
Select the appropriate collection strategies to improve cash
flow and minimize bad debt losses
Develop and formulate a credit and collection policy
framework for their organizations
Methodology
:
Instructor led discussions, followed by scenario
analyses, Video presentations and self reflection exercises
Who Should Attend
:
This workshop is for executives involved or responsible in formulating,
enforcing and implementing credit policies, and debt collection
As business gets competitive, suppliers of goods and services are often forced to compete on more relaxed credit terms. This raises the risk of bad debts and a potential cash flow crisis. Management, therefore, needs to be on guard for bad customers, constantly improve debtor quality and maintain regular cash flow from credit customers. Trade receivables collection is the key to good business cash flow. Effective receivable management reduces the risk of bad debts and minimizes cash flow interruption and costs of doing business.
Course Outline
I.
Effectiveness In Collection
a. Why Collection Efforts Fail
b. Common Approach vs Creative Collection
c. Strategy for Effective Collection
d. Implementing Effective Debt Collection
c. Credit culture and practice
II.
Understanding Debtor’s Behavior
a. How does debtor behave when you call
b. How to tackle difficult situations
c. Why does debtor refuse to pay/ delay payments
III.
Communicating with your Debtor
a. Collection Call
b. How to make an effective Collection Call
c. Process of Collection Call
d. The Cycle of Collection Call
Role Play: How to handle difficult Collection Calls
IV.
Negotiating with Debtor a. The Objective
b. The Process
c. Good Negotiations Strategy
d. Common Debtor Tactics
Group Exercise: Solutions on how to resolve different scenarios
