Credit Management and Debt Collection Course

Course Objectives
The objectives of this Credit Management and Debt Collection course are:
• Understand debtors and know how to communicate with them effectively
• Manage your company’s risks and minimize bad debts
• Use Credit evaluation and credit limit review
• Understanding and applying the credit assessment policy and its control mechanism
• Get Optimal resource utilization, increased cash conversion
• Reduced credit risk and excellent return on investment
• Practical and engaging collection and negotiation scenarios
COURSE OUTLINE
This Credit Management and Debt Collection Training course includes the following modules:
Introduction to Credit Management
• What is Credit Management?
• Importance of Credit Management
• Credit Department’s Responsibility
• The 6 Cs of Credit
Credit Risk Assessment
• Financial Factors Affecting Credit Decision (Financial Statements: What to Look for) Probability of Default, Exposure at Default, Loss given Default, Expected Loss
• Borrowing Need and Capacity Assessment
• Leverage and Coverage Ratios
• Liquidity, Profitability and Activity Ratios
• Cash Flow Analysis and Projections
• The Z Score
• Credit VaR
Non-Financial Factors Affecting Credit Decision
• Business Environment and Industry Status
• Company Vulnerability
• Management Integrity, Skill & Execution
• Exercises and Cases
Mitigating Risk Assessment
• Setting the Credit Limit
• Review New Accounts
• Re-Evaluate Existing Account
Loan Structuring
• Credit Enhancements and LTV limits
• Loan Covenants
• Loan Pricing and Negotiating
• Problem Loans and Restructuring
• Credit Derivatives (Credit Default Swap, Total Return Swap, Credit Spreads etc.)
• Exercises and Cases
Collection Performance and Efficiency
• Aging of Accounts Receivable and Bad Debt Reserves Analysis
• Accounts Receivable Turnover and Days Sales Outstanding
• Collection Effectiveness Index
• Analysing Operating and Cash Cycles
• Improving Working Capital Health
• Bad Debt Collection
• Factoring
• Overdue Ratio Calculation
• Discount & Prepayments
Analysis and Decision Strategies for Credit Efficiency
• Scenario Manager
• Goal Seek
• Data Table (Sensitivity Analysis)
• Solver Technique

Methodology
The training methodology integrates lectures, interactive discussions, collaborative group exercises, and illustrative examples. Participants will acquire a blend of theoretical insights and hands-on practical experience, emphasizing the application of learned techniques. This approach ensures that attendees return to their professional environments equipped with both the competence and self-assurance to effectively implement the acquired skills in their responsibilities.
DATE:
1ST BATCH: 20th – 23rd May, 2025
2ND BATCH: 2nd – 5th Dec, 2025